D7A2: Understanding the Carbon Border Adjustment Mechanism Flashcards
1
Q
What is the EU’s Carbon Border Adjustment Mechanism?
A
Imposition of a carbon tariff on imported goods
2
Q
What is this tariff based on?
A
Based on the level of embedded emissions in the goods and carbon price paid by manufacturers
3
Q
When has CBAM been effective from?
A
October 2023
4
Q
What does CBAM hope to address?
A
Carbon leakage
5
Q
What does AfCFTA stand for?
A
African Continental Free Trade Area
6
Q
Which organisation proposed CBAM?
A
European Union
7
Q
How much of a decrease in African exports to the EU could CBAM cause?
A
13.9% decrease in aluminium
8.2% decrease in iron and steel
3.9% decrease in fertiliser
3.1% decrease in cement
