The EU's CBAM and Its ‘Significant Others’: Three Perspectives on the Political Fallout from Europe's Unilateral Climate Policy Initiative

Abstract

AbstractAs part of the European Green Deal, the European Commission has launched a tool to protect the fulfilment of Europe's climate policy targets – the carbon border adjustment mechanism (CBAM). It is thought that the CBAM will spark stiff resistance from Europe's external trade partners, potentially undermining the initiative. How this plays out will depend in part on who the opponents and potential allies are – and how the European Union (EU) engages with them. But which non‐EU countries have a stake in the CBAM? The criteria for selecting third countries that are relevant for the CBAM are often implicit, which can lead to contradictory policy analyses and confused climate diplomacy. This research note compares three different perspectives that result in different lists of non‐EU countries that are important for the success of the CBAM. Awareness of these three perspectives amongst EU actors can help the CBAM succeed.