Carbon Border Adjustments - What are they and how will they impact Australia?

A photograph of a coal fired power station, with smoke billowing out of the chimneys.
11 June 2021

All G7 members have sharpened their climate and trade policies to consider the use of carbon border adjustments. Australia should lean in rather than push back on the development of such a proposal while taking advantage of the opportunities in existing and new export industries.

The European Union (EU), the US, Canada, Japan and the UK are ramping up climate commitments ahead of the COP26 Climate Summit, including through domestic carbon prices. To enable their carbon pricing to operate effectively across the global economy, they are contemplating carbon border adjustment mechanisms (CBAMs).

Once implemented, CBAMs will tax the carbon content of imports from countries with unpriced carbon, such as Australia.

Read the full article on the Australia Institute website, co-authored by Honorary Assoc. Prof Hugh Saddler