The EU ETS and CBAM are key drivers to achieve industrial decarbonization and secure a prosperous and industrial EU, but they must be accompanied by flanking measures to be effective in a context where they must face other decarbonisation approaches such as the Inflation Reduction Act (IRA) in the US and significant subsidies for green industry in China. This session discussed 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 brought together experts in the areas of economics, law, and policy to address the evolving context of trade and industrial decarbonization.

Agenda     Slides