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- European Union and its Member States — Carbon Border Adjustment Mechanism
European Union and its Member States — Carbon Border Adjustment Mechanism
Geography
International
Year
2025
Document Type
Litigation
About this case
Filing year
2025
Status
Pending
Geography
International
Court/admin entity
World Trade Organization → WTO Dispute Settlement Body
Case category
Suits against governments (Global) → Trade and Investment (Global) → Climate-justified measures (Global)
Principal law
International Law → Agreement on Subsidies and Countervailing Measures (SCM Agreement)International Law → General Agreement on Tariffs and Trade 1994
At issue
Whether the European Union's Carbon Border Adjustment Mechanism (CBAM Package) and the alleged export subsidy under the Scheme for Greenhouse Gas Emission Allowances Trading are inconsistent with WTO rules, including the GATT 1994, the SCM Agreement, and the Import Licensing Agreement.
Topics
, ,
Documents
Filing Date
Document
Type
Topics
Beta
05/26/2025
Communication from the European Union
Other
05/19/2025
Request for Consultations by the Russian Federation
Other
Summary
On May 12, 2025, the Russian Federation requested consultations with the European Union regarding the European Union's Carbon Border Adjustment Mechanism (CBAM Package) and an alleged export subsidy under the Scheme for Greenhouse Gas Emission Allowances Trading. Russia claims that the CBAM Package is inconsistent with several provisions of the GATT 1994, the accession protocols of Bulgaria, Latvia, Estonia, Croatia, and Lithuania, and Articles 1.2, 1.3, and 3.2 of the Import Licensing Agreement. Additionally, Russia argues that the alleged subsidy violates Articles 1.1(a)(1) and 3.1(a) of the SCM Agreement, as well as Articles VI and XVI of the GATT 1994.
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Group
Topics
Policy instrument
Risk
Fossil fuel
Greenhouse gas
Economic sector
Adaptation/resilience
Finance