Can WTO Rules Support the Dissemination of the EU-Style CBAM in HIDCs?
Year: 2025
Type: article
Abstract: The European Union (EU) Carbon Border Adjustment Mechanism (CBAM) offers a practical solution to prevent carbon leakage, and its success has sparked discussions about implementing similar regulatory mechanisms in other countries. These discussions have been limited to the adoption of EU-style CBAM in developed countries, overlooking the significant carbon leakage challenges faced by highly industrialized developing countries (HIDCs). This article argues that EU-style CBAMs are equally essential in HIDCs to achieve carbon neutrality and emphasizes the role of WTO law in facilitating their international adoption. It explores the motivations for HIDCs to implement such mechanisms and analyzes how WTO law can support their dissemination, contributing to global climate governance. The key contribution of this article is its pioneering exploration of the potential of establishing EU-style CBAMs in HIDCs and the role of WTO law in driving this regulatory shift. Additionally, it addresses the application of the principle of common but differentiated responsibilities in potential CBAM-related disputes, offering a fresh perspective that complements existing research on the EU CBAM’s compliance with WTO rules.
Source: Journal of World Trade
DOI: 10.54648/trad2025044
Author: Xinyan Zhao
Language: English
Topic: World Trade Organization Law
Field: Social Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W4413230170