The impact of carbon pricing and a CBAM on EU competitiveness

EU Member States have committed themselves to achieving an EU-wide 55% reduction in carbon emissions by 2030 with an ultimate goal of full climate neutrality by 2050. To reach these goals, the European Commission (EC) has presented various policy proposals in the ‘Fit for 55’ package under the EU Green Deal. These include proposals for better carbon pricing by strengthening the EU Emissions Trading System (ETS) with lower emission ceilings and by expanding the ETS to new sectors.