Compatibility between the Carbon Border Adjustment mechanism and the regulations of the World Trade Organization towards sustainable trade

Abstract

On 16 May 2023, the European Union issued Regulation 2023/956 Establishing the Carbon Border Adjustment Mechanism (CBAM) - the first step in realizing the goal of addressing climate change and fair competition in global trade. However, the birth of CBAM raises questions about the compatibility of this mechanism with the World Trade Organization (WTO)'s regulations related to sustainable trade. To answer this question, the study focuses on analyzing the compatibility of CBAM with important documents within the WTO framework towards sustainable trade, thereby assessing the compatibility between CBAM and WTO regulations towards sustainable trade.
Keywords
CBAM WTO sustainable trade compatibility

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