Beyond Borders: CBAM’s Revolutionary Potential and Challenges in Achieving Carbon Neutrality

Main Article Content

Taniya Choudhury
Anupam Tiwari
Rakshit Jakhar

Abstract

The Carbon Border Adjustment Mechanism (CBAM) is a ground-breaking method for attaining carbon neutrality in international trade as the world community struggles with the pressing need to address climate change. This research investigates how the CBAM might influence the dynamics of international trade and promote the shift to low-carbon, sustainable economies. A critical analysis has been conducted to explore the CBAM's transformational potential in bringing trade practices into line with climate goals by examining its economic, environmental, and political components and its implication practice, covering issues with trade equity, enforcement protocols, and possible geopolitical conflicts. The information has been gathered from several reliable sources, including the WTO, the European Commission for trade input, the World Bank, and the EPA for emission information. It has been compiled into a tabular format for simplicity of reading. The graphs have been plotted using Python (3.11.6) to improve visual comprehension. Stakeholders may help CBAM implement successfully by adopting these suggestions, maximising its revolutionary potential, and overcoming the difficulties in reaching carbon neutrality in international trade. By using an interdisciplinary approach, the study seeks to offer a thorough grasp of CBAM's function in becoming carbon neutral, revealing the complex obstacles that must be overcome for it to integrate into the world economy successfully.

Downloads

Download data is not yet available.

Article Details

How to Cite
[1]
Taniya Choudhury, Anupam Tiwari, and Rakshit Jakhar , Trans., “Beyond Borders: CBAM’s Revolutionary Potential and Challenges in Achieving Carbon Neutrality”, IJITEE, vol. 13, no. 4, pp. 7–16, Mar. 2024, doi: 10.35940/ijitee.D9818.13040324.
Section
Articles

How to Cite

[1]
Taniya Choudhury, Anupam Tiwari, and Rakshit Jakhar , Trans., “Beyond Borders: CBAM’s Revolutionary Potential and Challenges in Achieving Carbon Neutrality”, IJITEE, vol. 13, no. 4, pp. 7–16, Mar. 2024, doi: 10.35940/ijitee.D9818.13040324.
Share |

References

Mörsdorf, G. (2022). A simple fix for carbon leakage? Assessing the environmental effectiveness of the EU carbon border adjustment. Energy Policy, 161, 112596. https://doi.org/10.1016/j.enpol.2021.112596

The European Commission on the Carbon Border Adjustment Mechanism. Available online: https://ec.europa.eu/commission/presscorner/detail/en/ip_23_4685 (accessed on 17.12.2023).

Lim, B., Hong, K., Yoon, J., Chang, J. I., & Cheong, I. (2021). Pitfalls of the EU’s carbon border adjustment mechanism. Energies, 14(21), 7303. https://doi.org/10.3390/en14217303

Lockwood, B., & Whalley, J. (2010). Carbon‐motivated border tax adjustments: old wine in green bottles? World Economy, 33(6), 810-819. https://doi.org/10.1111/j.1467-9701.2010.01285.x

Dimitrov, R. S. (2016). The Paris agreement on climate change: Behind closed doors. Global environmental politics, 16(3), 1-11. https://doi.org/10.1162/GLEP_a_00361

Ritter, H., & Schopf, M. (2014). Unilateral climate policy: harmful or even disastrous? Environmental and Resource Economics, 58, 155-178. https://doi.org/10.1007/s10640-013-9697-0

Eicke, L., Weko, S., Apergi, M., & Marian, A. (2021). Pulling up the carbon ladder? Decarbonization, dependence, and third-country risks from the European carbon border adjustment mechanism. Energy Research & Social Science, 80, 102240. https://doi.org/10.1016/j.erss.2021.102240

Mehling, M., & Ritz, R. A. (2020). Going beyond default intensities in an EU carbon border adjustment mechanism. University of Cambridge, Faculty of Economics.

Zhong, J., & Pei, J. (2023). Carbon border adjustment mechanism: a systematic literature review of the latest developments. Climate Policy, 1-15. https://doi.org/10.1080/14693062.2023.2261894

Acar, S., Aşıcı, A. A., & Yeldan, A. E. (2022). Potential effects of the EU’s carbon border adjustment mechanism on the Turkish economy. Environment, Development and Sustainability, 24(6), 8162-8194. https://doi.org/10.1007/s10668-021-01779-1

Häberli, C. (2021). Carbon Border Adjustment Mechanism+ WTO= Impasse Totale?

Bellora, C. (2020). Carbon Border Adjustment and Alternatives.

Lockwood, B., & Whalley, J. (2010). Carbon‐motivated border tax adjustments: old wine in green bottles? World Economy, 33(6), 810-819. https://doi.org/10.1111/j.1467-9701.2010.01285.x

Bellora, C., & Fontagné, L. (2023). EU in search of a Carbon Border Adjustment Mechanism. Energy Economics, 123, 106673. https://doi.org/10.1016/j.eneco.2023.106673

Simola, H. (2021). CBAM!–Assessing potential costs of the EU carbon border adjustment mechanism for emerging economies.

Bellora, C., & Fontagné, L. (2022). EU in search of a WTO-compatible carbon border adjustment mechanism. Available at SSRN 4168049. https://doi.org/10.2139/ssrn.4168049

Xin, X., & Jinchang, W. (2023). European Union Carbon Border Adjustment Mechanism: Content Review and China's Emergency Response. J. WTO & China, 13, 12.

JOUSSEAUME, M., MENNER, M., & REICHERT, G. (2021). CBAM: DAMAGING TO CLIMATE PROTECTION AND EU EXPORT INDUSTRIES. CEP-STUDY. [CROSSREF]

Buber, R., Ivanova, E., Mackerle-Bixa, S., Meyer, M., & Rameder, P. Vienna University of Economics and Business (WU) Institute for Nonprofit Management.

Quick, R. (2021). Carbon Border Adjustment. ZEuS Zeitschrift für Europarechtliche Studien, 23(4), 549-597. https://doi.org/10.5771/1435-439X-2020-4-549

The EU’s Carbon Border Tax: How Can Developing Countries Respond. Available online: https://www.cgdev.org/blog/eus-carbon-border-tax-how-can-developing-countries-respond (accessed on 02.01.2024).

Latest statement by India's commerce minister Piyush Goyal. Available online: https://business.outlookindia.com/news/india-will-address-eus-carbon-tax-issue-will-retaliate-if-requiredgoyal#:~:text=%22Bharat%20will%20address%20the%20problem,at%20an%20industry%20chamber%20event . (accessed on 24.12.2023).

EU’s carbon levy could cost Africa $25bn per year, says bank chief. Available online: https://www.euractiv.com/section/africa/news/eus-carbon-levy-could-africa-25bn-per-year-says-bank-chief/ (accessed on 02.01.2024).

Overland, I., & Sabyrbekov, R. (2022). Know your opponent: Which countries might fight the European carbon border adjustment mechanism?. Energy Policy, 169, 113175. https://doi.org/10.1016/j.enpol.2022.113175

West has sanctioned Russia and its supporter’s trade commodities over the invasion of Ukraine. Available online: https://www.state.gov/imposing-additional-sanctions-on-those-supporting-russias-war-against-ukraine-2/ (accessed on 28.12.2023).

Russia sabotaging the Nord Stream pipe line. Available online: https://www.gov.uk/government/speeches/the-sabotage-of-the-nord-stream-pipelines-should-be-treated-with-utmost-seriousness-uk-statement-at-the-security-council (accessed on 28.12.2023).

Petroleum gas supply chain bottleneck in the EU. Available online: https://www.iea.org/reports/how-to-avoid-gas-shortages-in-the-european-union-in-2023/the-need-for-action (accessed on 28.12.2023).

Inflation reaches record highs in Europe and America, driven by both cost-push and demand-pull factors. Available online: https://www.pwc.com/mt/en/publications/other/economicoutlook2022.html#:~:text=Inflation%20reaches%20record%20highs%20in,the%20Euro%20area%20was%20formed (accessed on 28.12.2023).

Europe is firing up old coal plants to get through winter. Available online: https://balkangreenenergynews.com/europe-is-firing-up-old-coal-plants-to-get-through-winter/ (accessed on 28.12.2023).

A Quick Increase in the Production of Clean Electricity. Available online: https://www.iea.org/energy-system/fossil-fuels/coal (accessed on 17.12.2023).

CO₂ and Greenhouse Gas Emissions Data Explorer: Per capita CO₂ emissions. Available online: https://ourworldindata.org/explorers/co2 (accessed on 02.01.2024).

Climate Watch Historical GHG Emissions: CO2 Emission data (per capita metric ton). Available online: https://data.worldbank.org/indicator/EN.ATM.CO2E.PC (accessed on 02.01.2024).

Böhringer, C., Fischer, C., Rosendahl, K. E., & Rutherford, T. F. (2022). Potential impacts and challenges of border carbon adjustments. Nature Climate Change, 12(1), 22-29. https://doi.org/10.1038/s41558-021-01250-z

European trading system. Available online: https://climate.ec.europa.eu/eu-action/eu-emissions-trading-system-eu-ets_en (accessed on 28.12.2023).

Khoja, I. A., & Khan, N. A. (2020). Goods and services tax, cascading, and revenue performance: Analyzing Indian commodity taxation market. Journal of Public Affairs, 20(3), e2109. https://doi.org/10.1002/pa.2109

Shidore, S., & Busby, J. W. (2019). One more try: The International Solar Alliance and India's search for geopolitical influence. Energy Strategy Reviews, 26, 100385. https://doi.org/10.1016/j.esr.2019.100385

Balal, A., & Giesselmann, M. (2021, October). Demand side management and economic analysis using battery storage system (bss) and solar energy. In 2021 IEEE 4th international conference on power and energy applications (ICPEA) (pp. 141-146). IEEE. https://doi.org/10.1109/ICPEA52760.2021.9639359

Rare earths in the South China Sea: adding fuel to the geopolitical fire. Available online: https://thediplomat.com/2023/11/rare-earths-in-the-south-china-sea-adding-fuel-to-the-geopoliticalfire/#:~:text=China%20has%20been%20the%20dominant,subterranean%20mining%20within%20the%20country . (accessed on 28.12.2023).

Vainikka, V. (2021). The EU’s proposed Carbon Border Adjustment Mechanism–challenges and how they are addressed.

Historical Greenhouse Gas Emissions. Available online: https://www.climatewatchdata.org/ghg-emissions?breakBy=regions&calculation=PER_CAPITA&chartType=line&end_year=2020&gases=co2&regions=EUU%2CWORLD%2CIND&start_year=1990 (accessed on 22.12.2023).

LETURCQ, P. (2022). The European Carbon Border Adjustment Mechanism and the path to Sustainable Trade Policies: From ‘Coexistence’to ‘Cooperation’. Cambridge Yearbook of European Legal Studies, 24, 67-87. https://doi.org/10.1017/cel.2022.6

Monjon, S., & Quirion, P. (2011). A border adjustment for the EU ETS: Reconciling WTO rules and capacity to tackle carbon leakage. Climate Policy, 11(5), 1212-1225. https://doi.org/10.1080/14693062.2011.601907

Mallouppas, G., Yfantis, E. A., Frantzis, C., Zannis, T., & Savva, P. G. (2022). The Effect of Hydrogen Addition on the Pollutant Emissions of a Marine Internal Combustion Engine Genset. Energies, 15(19), 7206. https://doi.org/10.3390/en15197206

Boothroyd, R., Williams, R., & Hoey, T. (2023). Coalition for Disaster Resilient Infrastructure (CDRI) 2022 Conference Proceedings. Sustainable and Resilient Infrastructure, 8(sup2), 1-143. https://doi.org/10.1080/23789689.2023.2181552

Geissdoerfer, M., Savaget, P., Bocken, N. M., & Hultink, E. J. (2017). The Circular Economy–A new sustainability paradigm? Journal of cleaner production, 143, 757-768. https://doi.org/10.1016/j.jclepro.2016.12.048

Perdana, S., & Vielle, M. (2022). Making the EU Carbon Border Adjustment Mechanism acceptable and climate friendly for least developed countries. Energy Policy, 170, 113245. https://doi.org/10.1016/j.enpol.2022.113245

Haas, T., & Sander, H. (2020). Decarbonizing transport in the European Union: Emission performance standards and the perspectives for a European Green Deal. Sustainability, 12(20), 8381. https://doi.org/10.3390/su12208381

An immediate transition to clean energy production from coal in power sectors. Available online: https://www.iea.org/energy-system/fossil-fuels/coal (accessed on 28.12.2023).

National Green Hydrogen Mission. Available online: https://mnre.gov.in/national-green-hydrogen-mission/ (accessed on 25.12.2023).

The initiative, Mission LiFE- Lifestyle for Environment taken by Indian Government. Available online: https://missionlifemoefcc.nic.in/#:~:text=Mission%20LiFE%3A%20An%20India%2Dled,living%20traditions%20are%20inherently%20sustainable (accessed on 26.12.2023).

The Mangrove Alliance for Climate (MAC) will advance mangroves as a nature-based response to climate change, building on international initiatives to promote biodiversity and draw attention to such solutions. Available online: https://mangrovealliance4climate.org/about/#:~:text=About%20Us&text=Building%20on%20global%20efforts%20to,based%20solution%20to%20climate%20change (accessed on 26.12.2023).

Ashton, E. C. (2022). Threats to Mangroves and Conservation Strategies. In Mangroves: Biodiversity, Livelihoods and Conservation (pp. 217-230). Singapore: Springer Nature Singapore. https://doi.org/10.1007/978-981-19-0519-3_10

Phalachandra, H. L., & Sitaram, D. (2020). Optimizing Energy Efficiencies in Cloud Data Center Resources with Availability Constraints. In International Journal of Engineering and Advanced Technology (Vol. 9, Issue 3, pp. 1406–1415). https://doi.org/10.35940/ijeat.c4746.029320

Babu, A. P., Sujin S, Anoop S S, Suresh, S. R., & Nath, S. R. H. (2024). Effects of Wastewater Sludge Addition on Fired Clay Bricks: Enhancing Performance and Sustainable Construction Practices. In International Journal of Emerging Science and Engineering (Vol. 12, Issue 2, pp. 1–5). https://doi.org/10.35940/ijese.b4323.12020124

Selvan*, K. (2019). Novel Framework for Predicting and Analyzing the Impact on Climate Change. In International Journal of Innovative Technology and Exploring Engineering (Vol. 8, Issue 12, pp. 2475–2481). https://doi.org/10.35940/ijitee.l3426.1081219

Most read articles by the same author(s)

<< < 3 4 5 6 7 8 9 10 > >>