Abstract

Developing carbon mitigation procedures among different jurisdictions has often created the risks of carbon leakage. One way of addressing the complexities created as a result is to consider the application of the Carbon Border Adjustment Mechanism (CBAM) to resolve emerging climate issues within the international trade framework. This paper discusses the intricacies of adopting a CBAM in the United States, its domestic competitiveness, trade with international partners, and the leakages that may arise as a result. This tool is deployed in the need to curb emissions arising from global ...