Title page
Contents
Summary 4
How is the UK reducing its carbon emissions? 4
Why isn't emissions trading enough to reduce carbon emissions? 4
What is a Carbon Border Adjustment Mechanism (CBAM)? 5
Are there design challenges to a CBAM? 5
What implications does the EU CBAM have for the UK? 5
Global cooperation 6
Further reading 6
1. What is a Carbon Border Adjustment Mechanism (CBAM)? 7
1.1. What does a CBAM achieve? 7
1.2. How does it work? 8
2. EU Carbon Border Adjustment Mechanism 10
2.1. Design of EU CBAM 10
2.2. Implications of EU CBAM for the UK 13
3. UK Government plans for a UK CBAM 20
3.1. Policy development 20
3.2. Design 20
3.3. Views on UK CBAM 22
3.4. Comparison with EU CBAM 23
4. International trade considerations 27
4.1. Compliance with global trade rules 27
4.2. Effect on developing countries 33
5. Global cooperation 38
6. Further Reading 40
Effectiveness of CBAMs 40
UK CBAM 40
EU CBAM 40
Trade considerations 41
United States 41