Less confrontation, more cooperation - Increasing the acceptability of the EU Carbon Border

Decisive factors include the share of exports of the specific good to the EU compared to the overall value of exports and the dependence on exports for a country’s GDP. [...] A second set of criticisms is motivated by the position of the European Council and the European Parliament25 to use CBAM revenues as a source of own EU income into the overall EU budget and, in the case of the Parliament, as a dedicated source for greening the EU’s economy. [...] The report “supports the Commission’s intention to use revenues generated by the CBAM as new own resources for the EU budget” and “believes that those new revenues should allow for greater support for climate action and the objectives of the Green Deal, such as the just transition and the decarbonisation of Europe’s economy, and for an increase in the EU’s contribution to international climate fin. [...] They argue that, given the historical responsibility for emissions of the Global North and with regard to the spirit of the Paris Agreement, countries from the Global North should take the lead on emissions reductions, while countries from the Global South should be given more time to transition, a differentiation which the CBAM could possibly largely or completely neglect. [...] Instead of presenting the CBAM as an instrument to 21 Increasing the acceptability of the EU Carbon Border Adjustment GERMANWATCH nudge trading partners, the EU should focus its narrative on the domestic objective of enabling higher climate ambition within the EU.