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Border Carbon Adjustment in the EU – CBAM in a portfolio of instruments for industrial decarbonization

May 16 @ 15:00 - 17:00

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This meeting is under Chatham House Rule

Hybrid event, both in person and online

In December 2022, the European institutions reached a provisional agreement in the CBAM trilogues. The transitional phase of the Carbon Border Adjustment Mechanism will start in October 2023, with actual implementation starting from 2026. Both Parliament and Council need to formally adopt the CBAM. 

The EU ETS and CBAM are key drivers to achieve industrial decarbonization and secure a prosperous and industrial EU. However, this approach is faced with other approaches around the world, such as the Inflation Reduction Act (IRA) in the US and significant subsidies for green industry in China.

It is therefore becoming evident that additional flanking measures are needed to ensure the functioning of carbon leakage mechanisms. The European Commission has already introduced some additional measure such as the Green Deal Industrial Plan and the Net-Zero Industry Act. Other mechanisms and funds are already in place. This session will discuss proposed and potential flanking measures that the EU needs to put in place based on the following questions:

  1. Is the objective of CBAM to: a) to address carbon leakage and competitiveness, or b) be a more comprehensive approach to promote industrial decarbonization?
  2. What elements of the objective are covered by the ETS and CBAM, and what are the gaps?
  3. To what extent do the existing or planned flanking measures in the EU contribute to filing those gaps?
  4. How does the combination of ETS and CBAM and flanking measures in the EU compare to other approaches, such as the subsidies under the US IRA and the China Five-Year Plan, in reaching industrial decarbonization while ensuring a prosperous and industrial EU?

Considering these policy questions, this roundtable discussion will bring together experts in the areas of economics, law, and policy to address the evolving context of trade and industrial decarbonization.


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May 16
15:00 - 17:00
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Rue Archimède 61
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