An Overview of the Climate Border Adjustment Mechanism
Introduction Importance of addressing climate change Introduction to the Climate Border Adjustment Mechanism (CBAM) What is CBAM? Definition and purpose Concept of carbon leakage Goals of CBAM Leveling the playing field Incentivizing sustainable production Promoting global climate action How Does CBAM Work? Carbon footprint calculation Carbon pricing CBAM certificates Border adjustments Implementation of CBAM Country-specific variations General process overview Case Study: European Union EU’s adoption and pilot phase Timeline for full implementation Impact on Global Emissions Potential reduction in emissions Encouragement of cleaner production practices Trade Cooperation and Disputes Potential for increased collaboration Risks of trade disputes Economic Implications Effects on importers and exporters Impact on global trade dynamics Challenges and Criticisms Protectionism concerns Implementation challenges Compliance and verification issues Opportunities for Innovation Development of