| Title | Measuring the Cost of the European Union's Carbon Border Adjustment Mechanism on Moroccan Exports |
|---|---|
| ID_Doc | 63395 |
| Authors | Morchid, W; Haddad, EA; Savard, L |
| Title | Measuring the Cost of the European Union's Carbon Border Adjustment Mechanism on Moroccan Exports |
| Year | 2024 |
| Published | Sustainability, 16, 12 |
| Abstract | The 'Fit for 55' policy package was presented in the European Commission's Green Deal framework, comprising a set of proposals to improve existing energy and climate legislation. Among its main proposals was a revision of the European Union's Emission Trading System to expand its sectoral coverage. Anticipating the possible loss of competitiveness with carbon pricing within the EU-which may lead to 'carbon leakage'-a carbon border adjustment mechanism (CBAM) was included in the package. This scheme takes the form of an export tax levied by the European Union on some goods manufactured in non-carbon-taxing countries. In this paper, we provide a first-order estimate of the potential impact of CBAM on Morocco's exports using an input-output approach. Our main findings suggest that the scheme would yield a carbon bill ranging from USD 20 to 34 million annually to Moroccan exporters in its initial phase. Morocco can mitigate such economic losses by instituting a national Emission Trading System, a tax reform, or speeding up the decarbonization of its economy. |
| https://www.mdpi.com/2071-1050/16/12/4967/pdf?version=1718091224 |
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