Achilles’ heel of the EU: the initiative on a cross-border carbon tax

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Resumo

A systemic analysis of the vulnerability of the EU initiative on a cross-border carbon tax (CBAT) is conducted. The connection between CBAT and the European Emissions Trading System, including the scheme for the distribution of free permits, is revealed. The role of CBAM as a new source of EU revenue, changing the balance of power between the European Commission and EU member states, is shown. A conclusion is formulated on the impact of these revenues on the nature of the EU’s behavior in the global community and recommendations are made on countermeasures to effectively counter the EU initiative CBAT, including the inclusion of this issue in the BRICS agenda.

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Sobre autores

Sergey Roginko

Institute of Europe of the Russian Academy of Sciences; Financial University under the Government of the Russian Federation

Autor responsável pela correspondência
Email: roginko@bk.ru
ORCID ID: 0000-0003-2094-9259

Candidate of Sciences (Economics), Head, Environment & Development Center, Institute of Europe of the Russian Academy of Sciences; Professor, Financial University under the Government of the Russian Federation

Rússia, Mokhovaya street, 11/3, Moscow, 125009; Moscow

Bibliografia

  1. Ambec S. (2024) Plugging Carbon Leaks with the European Union’s New Policy. Kleinman Center for Energy Policy. August 26, 2024. (https://kleinmanenergy.upenn.edu/research/publications/plugging-carbon-leaks-with-the-european-unions-new-policy/).
  2. Bellora C., Fontagné L. (2023) EU in search of a Carbon Border Adjustment Mechanism. Energy Economics, vol. 123, July 2023. (https://www.sciencedirect.com/science/article/abs/pii/S0140988323001718).
  3. Damsté C., Banks J. (2024) The EU Carbon Border Adjustment Mechanism (CBAM): Implications for supply chains. PwC, February 27, 2024. (https://www.pwc.com/gx/en/services/tax/esg-tax/cbam-supply-chain-imperatives.html).
  4. Monkelbaan J., Figures T. (2022) CBAM: What you need to know about the new EU decarbonization incentive. The World Economic Forum, Dec. 19, 2022. (https://www.weforum.org/stories/2022/12/cbam-the-new-eu-decarbonization-incentive-and-what-you-need-to-know/).
  5. Zhang D., Winters L.A. (2024) The revenue potential of phasing out the free allowances received by UK CBAM sectors. Center for Inclusive Trade Politics, CITP, 12 April 2024. (https://citp.ac.uk/publications/the-revenue-potential-of-phasing-out-the-free-allowances-received-by-uk-cbam-sectors).

Arquivos suplementares

Arquivos suplementares
Ação
1. JATS XML
2. Figure 1. Schedule for the withdrawal of free EUAs from the EU ETS and the introduction of taxation on imported products in the CBAM in the volume of EU industrial emissions in 2026–2034, %

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