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The Legality Of The European Union’S Carbon Border Adjustment Mechanism And The Limitations Of World Trade Organization Rules On Effective Climate Action, Delaney Smith
Honors Theses
In July 2021, the European Union proposed the creation of a carbon border adjustment mechanism, a trade mechanism that would levy a carbon price against imported goods. This mechanism, the first of its kind, has the potential to address weaknesses in the EU’s existing domestic cap and trade system and create a financial incentive for other nations to reduce their carbon emissions. However, legal experts have raised concerns that this mechanism may violate the rules of the World Trade Organization. If another member state raises a complaint against the measure, the European Union will be forced to navigate the World …