- OECD released a working paper on the EU CBAM impact on supply chains.
- The paper analyzes the impact of the EU CBAM on global trade and climate policy.
- The EU adopted the ‘Fit for 55’ package, including an EU ETS reform.
- The EU introduced the CBAM to address carbon leakage.
- The paper uses an input-output model to simulate the CBAM impact on value-added and emissions.
- Results show the CBAM can prevent carbon leakage but partially mitigates negative effects on value-added.
- The simulation compares the CBAM impact with the EU ETS carbon price increase.
- The simulation does not model the gradual implementation of the policy.
- Most non-EU economies benefit from the EU ETS reform despite the CBAM.
- The CBAM encourages cleaner export-oriented production globally.
Source: regfollower.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
