As for the CBAM it is obvious that much of what is going on right now is in part dealing with the effects that the CBAM also should deal with, but it strikes me that you are missing two long term points:
1) The CBAM is aimed to be a long term instrument hopefully surviving the present conflict by decades.
2) The CBAM is in making since many years (some 20y that EU industry has been feeling the economic pressure from countries not having same level of environmental measures) and is not just about the EU, but very much about driving EU climate policy beyond EU borders.
In addition, the EU CBAM is likely to have an important spill-off effect on other countries actions on like measures, plus it will undoubtedly have a kick-ass effect on the debate at the level of WTO on what is possible and what is not under the provisions of GATT.
Thank you for your response! I’m still, on balance, in favour of CBAM because of c), but I do think its ability to influence countries beyond its borders is much diminished, particularly if you assume (as I do) that the sanctions will be in place for a long time to come.
Thanks Sam for you always thought provoking MFN.
As for the CBAM it is obvious that much of what is going on right now is in part dealing with the effects that the CBAM also should deal with, but it strikes me that you are missing two long term points:
1) The CBAM is aimed to be a long term instrument hopefully surviving the present conflict by decades.
2) The CBAM is in making since many years (some 20y that EU industry has been feeling the economic pressure from countries not having same level of environmental measures) and is not just about the EU, but very much about driving EU climate policy beyond EU borders.
In addition, the EU CBAM is likely to have an important spill-off effect on other countries actions on like measures, plus it will undoubtedly have a kick-ass effect on the debate at the level of WTO on what is possible and what is not under the provisions of GATT.
So, for me, the CBAM has every good reason to be.
Thank you for your response! I’m still, on balance, in favour of CBAM because of c), but I do think its ability to influence countries beyond its borders is much diminished, particularly if you assume (as I do) that the sanctions will be in place for a long time to come.