Bridging mechanisms for synergistic influence

This paper explores potential synergies between the European Union's Carbon Boundary Adjustment Mechanism (CBAM) and Article 6.2 of the Paris Agreement. Since CBAM has the potential to influence global markets and confront new economies, its integration with Article 6 para. 2 could provide a path to collaborative and effective global climate action. CBAM, which aims to level the playing field for EU industry by introducing a carbon price on imports, is aligned with the pricing of the EU Emissions Trading System (EU ETS) and is due to fully start in 2026. The mechanism seeks to protect EU industries from non-EU industries that externalize the cost of carbon production, while encouraging non-EU countries to introduce carbon pricing mechanisms in line with global agreements. (Ruth Dawes, more at lexology.com)