Trade-related climate measures that condition market access on carbon intensity often account for foreign carbon prices, as seen in the case of the EU CBAM. Accurately determining the carbon price paid abroad proves complex in ptactice, however. This analysis dissects alternative approaches, highlighting their implications and trade-offs.

This report provides a comprehensively overview of strategic challenges and policy options for EU emissions trading in the 2030-2040 horizon.

This study, commissioned by the European Commission’s DG TAXUD, evaluates design options for an EU Carbon Border Adjustment Mechanism across selected sectors, addressing objectives, scope choices, administrative feasibility, and likely economic and environmental effects.