BRUSSELS REPORT: CBAM THREATENS EU COMPETITIVENESS AND GLOBAL CLIMATE COOPERATION
The EU’s Carbon Border Adjustment Mechanism (CBAM) is heavily criticised in Brussels Report for raising costs for European manufacturers, especially SMEs, while phasing out free allowances and imposing burdensome reporting requirements. Drawing on Epicenter expertise, the article warns that the selective mechanism distorts supply chains, invites retaliation from trading partners, and disadvantages developing countries – ultimately risking trade wars and undermining international climate efforts rather than strengthening them.
