Is the EU Carbon Border Adjustment Mechanism (CBAM) fair?

The EU’s Carbon Border Adjustment Mechanism (CBAM) aims to impose a fair price on the carbon emitted during the production of carbon-intensive goods (like iron, cement, etc.) entering the EU. This measure encourages cleaner industrial production in non-EU countries. The CBAM ensures that the price for carbon emissions embedded in imported goods is equivalent to the price of domestic production emissions by confirming that a price has been paid for these emissions.

Last night, while reading some newly released CBAM regulation details, I was interrupted by Albert, a foreign student I am hosting in my home for a year. He stopped my reading with some typical teenage requests that I don't even recall. But that’s not the point. Well, Albert is from Sierra Leone, one of the poorest countries in the world. This interruption made me question.

Is the CBAM system fair?

Poorer countries have fewer resources to reduce environmental impact and CO2 emissions, lacking the necessary processes and funds. It's important to remember that there are differentiated responsibilities among countries regarding climate change. In fact, highly industrialized nations, like those in the EU and the US, have contributed significantly to greenhouse gas emissions due to their industrial past and thus bear greater responsibility for addressing these issues.

The CBAM's goal of reducing emissions by de facto internalizing environmental costs could impose heavy commitments on resource-poor countries like Sierra Leone, comparable to those expected of more industrialized nations. Enforcing such measures penalizes countries in dire need of development, leading to the poor ultimately bearing the cost once again.

I am not sure we are going in the right direction with CBAM.

Carbon Border Adjustment Mechanism - European Commission