Industrial decarbonisation in a fragmented world: an effective carbon price with a ‘climate contribution’

K. Neuhoff, M. Sato, F. Ballesteros, C. Böhringer, S. Borghesi, A. Cosbey, K. Das, R. Ismer, A. Johnston, P. Linares, et al.

Resumen:

This report argues that Europe’s climate policymakers must prepare options to ensure the resilience of its industrial strategy in a global context of increasing fragmentation, and proposes a ‘climate contribution’ approach. In particular, the EU’s Carbon Border Adjustment Mechanism (CBAM) may not be sufficient to provide a level playing field if other countries do not pursue comparable carbon pricing strategies.

Palabras clave: carbon contract for difference; carbon leakage; carbon price; CBAM; CCFD; emissions trading; ETS; EU; industrial policy; UK

Fecha de publicación: 22-01-2025

IIT-25-015I