Carbon border adjustment mechanism: Tax or tariff for the climate? - www.kas.de
Facts and Findings
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Three possible configurations are under discussion: a kind of consumption tax, a tariff on the carbon content of imported goods, and the inclusion of imports in the EU-wide emissions trading system.
There is no ideal carbon border adjustment mechanism. Key problems are WTO conformity, the calculation of the "carbon content", and compatibility with existing climate protection measures.
In this context, climate diplomacy does not lose significance. In contrast, it has to be hoped that an EU border adjustment mechanism is ultimately made redundant by a climate protection regime covering all important trading regions.
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About this series
The series informs in a concentrated form about important positions of the Konrad-Adenauer-Stiftung on current topics. The individual issues present key findings and recommendations, offer brief analyses, explain the Foundation's further plans and name KAS contact persons.