We discuss the Carbon Border Adjustment Mechanism (CBAM), which will be the most debated global carbon initiative in 2023. This is effectively a global carbon tax that ensures that importers into the EU have paid the equivalent carbon price based on the EU Emissions Trading System (ETS). Viewed by many as a protectionist measure, it will be vigorously debated and challenged. That said, the implementation transition will last until 2032 at the earliest, so there are no near-term market implications. We chat about developments in China, the interaction between compliance and voluntary markets, and whether there is an inevitability for the merger under Article 6.
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Jan Ahrens is the CEO of SparkChange. Yan Qin is a lead analyst at Refinitiv. Michael Evans is an analyst in S&P Global Commodity Insights’ Low Carbon Markets team. Paddy Gourlay is a correspondent for Carbon Pulse, based in the UK.
