In the new issue of IRMO Aktualno, Research Assistant at the Department for International Economic and Political Relations, Ana Vučemilović-Grgić, analyses the introduction of the Carbon Border Adjustment Mechanism (CBAM), the first instrument of its kind at the global level. The mechanism, which will start to apply in the European Union from 1 January 2026, represents a key tool for preventing carbon leakage and strengthening the competitiveness of European industry, while at the same time posing a number of economic, trade, and geopolitical risks. The author examines the effects of CBAM on EU Member States as well as on trade partners, with particular emphasis on the challenges it creates for less developed countries and the neighbouring region of the Western Balkans. Special attention is also given to the impact of CBAM on the electricity market and the security of electricity supply. The article raises important questions about whether the European Union can achieve its climate objectives without undermining economic stability and international relations.
IRMO aktualno “New climate policy at the border of the European Union: potentials and risks of CBAM”
