The EU Carbon Border Adjustment Mechanism: A Long Long Way to Go
Imagine the following scenario. The European Union (EU) robustly tightens its Emission Trading System (ETS) and the EU carbon price rises dramatically. Investors who are ‘long carbon’ become wealthy. EU carbon emissions plunge as EU energy-intensive carbon emitters, such as cement makers, are forced to adapt to higher operating costs. Imports of cement from China,…