Table 2 Selection of most salient CBAM design issues
Overarching theme | Policy choices | Supporting literature |
|---|---|---|
Motivations and objectives | Why is there a need for CBAM and its effectiveness in addressing carbon leakage and other objectives? | Marcu et al. 2021; Monjon and Quirion 2011; Branger and Quirion 2014; Jakob 2021, Palacková 2019; Pirlot 2022 |
Policy instrument | What type of policy instrument underpins CBAM (e.g. an emissions trading system or a carbon tax)? | Marcu et al. 2021; Nartova and Shingal 2014; Rocchi et al. 2018; Monjon and Quirion 2011 |
Geographic scope | Should some countries be exempted from CBAM and how should policies in the country of origin be accounted for? | Marcu et al. 2021; Mehling et al. 2019; Cosbey et al. 2020; Ravikumar 2020 |
Sectors and products covered | What sectors and subsectors should be covered? | Marcu et al. 2021; Rocchi et al. 2018; Lininger 2015; Kuik and Hofkes 2010; Mehling et al. 2019; Zachmann and McWilliams 2020 |
Coverage of trade flows | Should imports only be covered or also exports? | Marcu et al. 2021; Evans et al. 2021; Mehling et al. 2019; Fischer and Fox 2012; Monjon and Quirion 2011 |
Emissions scope | What emissions (direct, indirect) should be covered? | Marcu et al. 2021; Balistreri et al. 2015; Mehling et al. 2019; Lininger 2015; Mattoo et al. 2013; Ghosh et al. 2012; Porterfield 2019 |
Determination of embedded emissions | What methodologies are used to calculate emissions embodied in goods? | Marcu et al. 2021; Balistreri et al. 2015; Mehling et al. 2019; Rocchi et al. 2018; Lininger 2015; Mattoo et al. 2013; Monjon and Quirion 2010 |
