Year: 2025
Type: article
Abstract: The European Union's Carbon Border Adjustment Mechanism (CBAM), as the world's first cross-border carbon tariff regime, aims to balance climate policies and international trade rules through carbon cost equalization. However, its unilateral nature has sparked significant controversy regarding its compatibility with the WTO's multilateral framework. This article focuses on the potential conflicts between CBAM and WTO rules, highlighting that its differentiated carbon pricing mechanism may violate non-discrimination principles, its transitional policies implicitly favor domestic industries, and its stringent data requirements create technical barriers for developing countries. The controversy surrounding CBAM fundamentally reflects the inherent tension between global climate governance and the existing trade system: while unilateral measures might temporarily mitigate carbon leakage risks, they risk exacerbating trade protectionism and undermining multilateral cooperation. To address these challenges, this study proposes a multilateral approach centered on harmonizing international standards, fostering technical capacity-building, and reforming WTO rules. It advocates for inclusive institutional design to reconcile environmental objectives with trade equity, thereby offering a governance framework that balances efficiency and fairness for global low-carbon transitions.
Author: Lingyi Lin
Institution: Fujian University of Technology
Language: English
Topic: World Trade Organization Law
Field: Social Sciences
Domain: Social Sciences
SDG: Climate action
Open Access status: hybrid
OpenAlex ID: W4410128371