Reimagining carbon border adjustment mechanisms: A path to climate and development synergy

Abstract

The European Union (EU)'s Carbon Border Adjustment Mechanism (CBAM) imposes import charges tied to carbon intensity and is set for full enforcement by 2026. Although it aims to reduce global emissions, its one-size-fits-all structure risks penalizing developing nations that often lack financial and technical resources for rapid decarbonization. This article presents “CBAM-Plus,” a framework that reinvests CBAM revenues in clean energy infrastructure, facilitates technology transfer, and recognizes non-pricing mitigation strategies. By bridging capacity gaps and channeling funds toward local development, CBAM-Plus seeks to promote decarbonization without reinforcing global inequities. As additional countries consider carbon border policies, measures that align climate objectives with development priorities are vital to preventing a new global carbon divide. Show more