Carbon borders and cement trade

The article analyzes the impact of the Carbon Border Adjustment Mechanism (CBAM) on trade in cement and clinker, a sector that serves as a prime case study for testing such measures. It evaluates the economic and regulatory consequences of introducing a border levy on CO2 emissions. This mechanism could either encourage a shift toward cleaner industrial processes that reduce emissions or remain a tool for regional market protection that merely alters trade routes and masks the relocation of emission sources.

Author: J. Verma, P. Bansal

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