The carbon border adjustment mechanism as an alternative to free allocation of certificates in the European Emissions Trading System. An analysis based on the WTO non-discrimination principle
Date
2023-12
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Stellenbosch : Stellenbosch University
Abstract
ENGLISH ABSTRACT: This research paper examines the European UnionĀ“s Carbon Border Adjustment Mechanism (CBAM) and its compatibility with the non-discrimination principle under WTO law. With the CBAM, the European Union (EU) wants to promote decarbonisation in countries outside the EU and reduce the risk of carbon leakage. Carbon leakage describes the migration of industry to countries with less stringent climate regulations than, for example, the EU under the European Emissions Trading System (EU ETS). Before analysing the CBAM and WTO law, the paper shows the weaknesses of free allocation of certificates from an economic and legal perspective. The free allocation was the European Union's previous measure to avoid carbon leakage risk. The following analysis of WTO law focuses first on the Most-Favoured-Nation (MFN) principle before concentrating on the National Treatment (NT) principle. Subsequently, potential exceptions under the GATT are examined. Ultimately, it is argued for the applicability of the exceptions Art. XX (b) and (g) GATT, which neutralises the violation of the principle of non-discrimination that has been established before. The research concludes with remarks on the relationship between EU and WTO law and a possible export rebate under the CBAM.
AFRIKAANSE OPSOMMING: Geen opsomming beskikbaar.
AFRIKAANSE OPSOMMING: Geen opsomming beskikbaar.
Description
Thesis (LLM)--Stellenbosch University, 2023.