LDCs and the EU Carbon Border Adjustment Mechanism

As part of the European Green Deal the European Union (EU) is establishing a carbon border adjustment mechanism (CBAM), which will put a carbon price on imports of certain goods from outside the EU. The mechanism is designed to disincentivise European companies from producing their products elsewhere – known as carbon ‘leakage’ – and to prevent European producers from being undercut by cheaper, high-carbon imports.  Least developed countries (LDCs) should be exempt from the CBAM and benefit from revenues generated by the mechanism. This article, for the United Nations LDC Portal on International Support Measures for LDCs, explains more.

Click here to read the piece.