The Carbon Border Adjustment Mechanism: Compatibility with WTO law and Turkey’s adaptation process to the European Commission’s proposed legislation

University essay from Lunds universitet/Institutionen för handelsrätt

Abstract: Nations are agreeing that the ongoing climate change needs to be addressed with serious policies. The EU is aiming to become climate neutral by 2050 and to achieve this, significant legislative proposals have been initiated. In 2021, the Commission presented a CBAM proposal that would come to heat the discussion on carbon pricing. The CBAM is not only affecting many third countries, such as Turkey, but is also controversial concerning the compliance with WTO law. This research aims to analyse the Commission’s proposal for a CBAM and if it can be in compliance with WTO law, as well as how Turkey as a third country is adapting to the mechanism. To fulfil this aim, a doctrinal legal approach will be taken and various legislative documents within the EU, WTO and Turkey will be analysed. The results show that a CBAM probably will be in compliance with WTO rules, but that it in the end may depend on the outcome of a dispute before the DSB. The results also show that Turkey is aiming to harmonise their legislation with EU law, and that the Turkish government is in a speedy process to adapt to the CBAM.

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