European Union and its Member States — Carbon Border Adjustment Mechanism - Other

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Litigation

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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.

European Union and its Member States — Carbon Border Adjustment Mechanism

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

This sector involves the wholesale and retail selling of goods.

A subsidy is a direct or indirect payment to individuals or businesses, typically provided as a government cash payment or a specific tax reduction.

Any compulsory, unrequited payment to the government levied on corporations or individuals. This can be for environmental reasons, such as introducing a Carbon tax to set a price that emitters must pay for the greenhouse gases they emit.

European Union and its Member States — Carbon Border Adjustment Mechanism - Other

Policy instrument

Greenhouse gas

Economic sector