- ADB criticises the EU’s high-carbon import tariffs.
- CBAM may not reduce emissions significantly
Asian Development Bank (ADB) worries about the European Union’s high-carbon import tariffs. The Carbon Border Adjustment Mechanism (CBAM) may not reduce emissions significantly. It could harm Asian nations. CBAM aims to prevent “carbon leakage.”
It targets Asian exports to the EU. Neil Foster-McGregor, ADB’s senior economist, notes CBAM’s limited scope. It covers only six sectors and EU imports. The report warns of downstream consequences. EU manufacturers may face higher costs.
This could lead to production relocation. Jong Woo Kang warns of new leakage. Despite partial offsetting upstream. Revenue should fund climate finance, says ADB. It estimates 14 billion euros by 2030. India and China criticise CBAM. They warn against trade protectionism.