CBAM ‘not enough’ to stop EU carbon leakage, think tank warns

Published 17:02 on May 13, 2026 / Last updated at 17:02 on May 13, 2026 / / EMEA (Compliance Markets & Taxes, Europe), International (CBAM & Tariffs), Net Zero Transition (Industrial Decarbonisation, Power/Electrification, Transport & Heating Fuels)

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The EU's Carbon Border Adjustment Mechanism (CBAM) will not, on its own, prevent European industry from shifting production to countries without carbon pricing, and risks pushing up costs and leakage risks for downstream sectors, a new report has warned.
The EU's Carbon Border Adjustment Mechanism (CBAM) will not, on its own, prevent European industry from shifting production to countries without carbon pricing, and risks pushing up costs and leakage risks for downstream sectors, a new report has warned.


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