Context and problem • The European Union’s Carbon Border Adjustment Mechanism (CBAM) was introduced to prevent carbon leakage, and to incentivise global carbon pricing. The UK is set to introduce a CBAM in 2027 for the same reasons. However, this policy measure will face limitations in a...

To reach climate neutrality, carbon emissions from the production of basic materials need to be significantly reduced. For governments' support measures to be consistent with their World Trade Organization obligations, they need to be compatible with the WTO's Agreement on Subsidies and...

To reach climate neutrality, carbon emissions from the production of basic materials need to be significantly reduced. For governments’ support measures to be consistent with their World Trade Organization obligations, they need to be compatible with the WTO’s Agreement on Subsidies and...

This short note gives an overview of the provisions in the EU–UK TCA as it relates to tax matters. The objective is to clarify the impact that the EU-UK TCA might have on the future of UK tax policy. Tax-related provisions in the EU–UK TCA can be divided into two main categories: first, the...

This short note first briefly describes the main features of the carbon emissions tax. Secondly, it highlights that the carbon emissions tax would mimic many design features of an ETS, which blurs the line between carbon taxation and emission trading. Thirdly, it discusses how such a carbon...

To reach climate neutrality, carbon emissions from the production of basic materials need to be significantly reduced. For governments' support measures to be consistent with their World Trade Organization obligations, they need to be compatible with the WTO's Agreement on Subsidies and...

By setting near-zero-emission requirements for the production of certain products to be sold on the European single market (product carbon requirements, PCRs), the European Union could accelerate the phase-out of carbon-intensive production processes. The announcement of such requirements would...