Ahead of the phase-in of the EU’s Carbon Border Adjustment Mechanism (CBAM) from the start of 2026, and the associated phase-out of free carbon permits for EU producers, this Focus assesses the implications for economic growth, inflation and monetary policy in the EU. In short, CBAM will only deal a very small blow to the economy at the macro level and won’t have a significant bearing on monetary policy. But neither will it be a boon for the bloc’s beleaguered industrial sector.
We will be discussing what the EU’s looming carbon border tax (CBAM) means for growth, trade and competitiveness in a Drop-In on Thursday 16th October at 1000 ET/1500 BST. Register here for the 20-minute online briefing.
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