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Asia/Pacific/Europe – Asia and the Pacific a collateral EU carbon controls target (East Asia Forum)

Ken Heydon, LSE

On 14 July 2021, EU officials announced a plan to phase out production subsidies and free pollution permits that had been issued to selected dirty industries, replacing them with a ‘carbon border adjustment mechanism’ (CBAM). CBAM requires firms to purchase pollution certificates when importing products from countries with perceived lax environmental standards. The mechanism in effect imposes tariffs on exporters of carbon-intensive products from countries without strong carbon mitigation regimes.

Asia and the Pacific a collateral EU carbon controls target | East Asia Forum