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Asia Pacific Economics Energy & Environment Europe

Unveiling Carbon Border Adjustment Mechanism (CBAM) Challenges: The Potential Dispute Between China and EU

Introduction In December 2022, the European Union (EU) approved a green tax on carbon-intensive commodities called the Carbon Border Adjustment Mechanism (CBAM). It aims at reducing carbon leakage, a phenomenon in which manufacturers move carbon-intensive production to countries with laxer climate policies, resulting in decreased carbon emissions in one country but increased emissions in another. […]