The EU’s Carbon Border Adjustment Mechanism

This issue of Commonwealth Trade Hot Topics examines the structure and orientation of Commonwealth countries’ CBAM-related exports to the EU to determine their level of exposure to this potential carbon pricing mechanism. The analysis is based on the Commonwealth countries’ trade flows in 2019 for the goods specified in Annex I of the Regulation of the European Parliament and of the Council establishing the CBAM (European Commission, 2021a).