Between CBAM, equity, and ambition – finding a just way to reach climate targets

What this event is about

The EU’s Carbon Border Adjustment Mechanism (CBAM) as introduced in October 2023 initially applies only to a selected number of goods at high risk of carbon leakage: iron and steel, cement, fertiliser, aluminium and electricity generation. Until 2026, the focus is on gathering and reporting the data required for assessing the carbon values of imported products. After this transitional period, importers of CBAM goods must pay a fee, proportional to the carbon costs faced by domestic production. This gradual approach, focused mainly on carbon values, is intended to smooth the roll-out and to facilitate dialogue with countries impacted by this measure. At the European level, the introduction of CBAM will lead to the withdrawal of free carbon allowances for sectors vulnerable to carbon leakage. After 2030, the scope of the covered sectors will be expanded further.

This BETD side event hosted by the International Network of the Energy Transition Think Tanks (INETTT) had the form of a dialogue between EU and non-EU countries. It cross-checked the effects of CBAM as intended by the EU (Germany, Poland) against the impacts expected in Brazil, Mexico, Indonesia, Türkiye and China – on socioeconomic, political, and geopolitical levels. The event aimed to foster ideas on how to mitigate any potential negative effects of the CBAM in both its current and future scopes.

The members of the network from Mexico (Iniciativa Climatica de Mexico), Brazil (E+ Energy Transition Institute), Indonesia (Institute for Essential Services Reform), Poland (Forum Energii), Germany (Agora Industry), Türkiye (SHURA Energy Transition Center), and an expert guest representing the Chinese perspective (adelphi), as well as the audience gathered at the event, explored the reality of introducing CBAM inside and outside of the EU with particular focus on community and economic impacts in the affected non-EU countries. The event deep dived into ways to address these issues and foster international cooperation on just energy and industrial transitions.

Programme
The detailed agenda can be found in the download area below.

Presentations
The slides shown during this event can be found further down.