Carbon Neutrality Dialogue

The EU Carbon Border Adjustment Mechanism and international trade law

The Chinese University of Hong Kong (CUHK) and KAS RECAP are organising a series of webinars discussing the legal dimension of the carbon neutrality pledges in Asia.


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In July 2021, the European Commission published its Proposal for a Regulation Establishing a Carbon Border Adjustment Mechanism (CBAM), following the adoption of the EU Climate Law committing the EU to climate neutrality by 2050. The main objective of the CBAM is to address the risk of climate leakage. As the EU raises its climate ambition while non-EU countries maintain less stringent climate policies, there is a risk of relocation of carbon-intensive production abroad, and replacement of EU products with carbon intensive imports, that could offset the EU emission reduction efforts. As the world’s largest “carbon importer”, any attempt by the EU to equalize the price of carbon between domestic products and imports is bound to impact on cross-border trade, in particular with Asia’s major exporters to the EU, and raise questions of compatibility with international trade law. This webinar will introduce the CBAM proposal, and discuss its implications from the perspective of international trade law. It will seek to understand what CBAM means for Asia’s main economies and what adjustment strategies are necessary in the context of the urgent need to decarbonize the world trade system.

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Online via Zoom

Dr. Christian Hübner


Leiter des Regionalprogramms Energiesicherheit und Klimawandel Asien und Pazifik +852 28822245