Carbon Border Adjustment Mechanism Limitations and their Direction in International Trade in the Fertilizer Industry


  •  Emin Yıldız    
  •  Ahmet Ozan Gezerman    

Abstract

Long-standing debates, along with the implementation and certification process of CBAM, have ushered in a new era of trade policy closely linked to the carbon content of traded goods. The application of tariffs based on the carbon content of traded products is expected to raise awareness of the ongoing debates about the environmental aspects of trade and how trade relations will develop in the future. The EU's environmental targets and the way environmental standards are applied to trade have been the subject of much debate. In particular, the selection of the five sectors with the highest carbon emissions has had far greater implications for trade relations than simply applying CBAM to emission-intensive sectors. The goal of reducing emissions from the agricultural sector is not a new topic being discussed today; various guidelines exist on the future of agriculture and the implementation of policies, interventions, and incentives aimed at reducing emissions from human-induced activities associated with agricultural production.

The implementation of CBAM and the development of technologies related to reducing carbon emissions have brought about new debates, shifting the focus from the policies enabling CBAM implementation to technological advancements.



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