Skip to main content

​
Addressing Market Externalities

If left unchecked, carbon cycle disprution will lead the evential failure of global market experiement. To prevent the temperure change sprilling out of control, countries around the world are implementing carbon taxes to incentive cleaner production. However, this puts their companies at a disadvantage in the global marketplace.

​
The First Step

The EU has been the first to implement a measure to increase the compeitiveness of low carbon products. The EU’s Carbon Border Adjustment Mechanism (CBAM) taxes emissions on select goods, gradulally increasing from 2026 at 2.5% actaul emissions to full emission coverage in 2034.

​
Mechanism for Global Impact

CBAM allows importers of these goods to deduct carbon price paid at origin. This encourages other countries to implement their our national carbon tax structure by capturing tax revenue otherwise captured by countries with a carbon tarrif.