A carbon tariff or carbon border adjustment mechanism (CBAM) is an eco-tariff on embedded carbon.[1] In 2024 the United States said it is not a carbon tax,[2] but the World Trade Organization has not come to a conclusion.[3] One aim to prevent carbon leakage from nations without a carbon price.[1] Examples of imports which are high-carbon and so may be subject to a carbon tariff are electricity generated by coal-fired power stations, iron and steel from blast furnaces, and fertilizer from the Haber process. Several countries levy carbon tariffs or are considering them.[4]
- ^ a b "What is a Carbon Border Adjustment Mechanism?". Brookings. Retrieved 2024-11-13.
- ^ "What is a carbon border adjustment mechanism (CBAM) and what are some legislative proposals to make one?". United States Congressional Joint Economic Committee. Retrieved 2024-11-13.
- ^ Porterfield, Matthew C. "Carbon Import Fees and the WTO" (PDF).
- ^ "EU's CBAM to spur other countries to introduce carbon border levies: IETA".