Consultation: Extension of the scope of the carbon border adjustment mechanism to downstream products and anti-circumvention measures

A consultation involves a targeted inquiry aimed at gathering expert insights to inform policy decisions. Typically lasting for several months, these consultations invite contributions from academics to provide evidence-based recommendations. The findings may support policy development, inform debates, or guide decision-making processes.

Description

Summary The initiative aims at extending the carbon border adjustment mechanism (CBAM) scope to some downstream products to reduce the risk of carbon leakage. The latter occurs if EU producers of downstream goods move production abroad to avoid increased carbon costs, or if EU buyers switch to