Headline: The Global Impacts of an EU Carbon Border Adjustment Mechanism

An EU Border Carbon Adjustment Mechanism (CBAM) may bring severe economic consequences to countries without the resources to adapt to a low-carbon paradigm. The EU should therefore consider possible policy risks and involve third-country stakeholders in CBAM policy design; use CBAM revenues to fund decarbonisation in at-risk countries; and build emissions reporting requirements around existing international obligations.