EU proposal for a Carbon Border Adjustment Mechanism: an advanced tool to combat ‘carbon leakage’ , a new EU own resource of ‘moral suasion’ for third Countries?

With the proposal for a Regulation of European Parliament and Council establishing Carbon Border Adjustment Mechanism (CBAM) adopted on July 14, 2021 by Commission, it begins to reach heart global debate opportunity adopt mechanisms combat phenomenon ‘carbon leakage’, that is attempt evade existing carbon pricing systems through delocalization most polluting activities. In this way, Union demonstrates its serious intention strengthen actions against climate change identify customs taxation as an instrument guide choices trading partners and, therefore, major world economies. The precautions in application CBAM long transitional period before entry into force, however, prevent full appreciation potential repercussions (also) terms new own resource budget.