Trade Organization’s regulations on sustainable trade
Published: July 25, 2026
Abstract
On May 16, 2023, the European Union introduced Regulation 2023/956, establishing the Carbon Border Adjustment Mechanism (CBAM) as a key measure to combat climate change and ensure fair competition in global trade. However, CBAM's implementation raises concerns regarding its alignment with World Trade Organization (WTO) regulations on sustainable trade. This study examines the compatibility of CBAM with key WTO legal frameworks, assessing its implications for international trade and sustainability. Based on this analysis, the study provides insights into potential legal challenges and policy recommendations for harmonizing CBAM with WTO regulations.
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