This document aims to present a synthesis of some of the main debates about carbon prices for policy purposes in the road to the COP30 to be hosted by the Government of Brazil in 2025.
Constructing a global carbon net zero economy between 2050 and 2070 consistent with the Paris Climate Change Agreement requires multiple public policies. Among these policies is the Carbon Border Adjustment Mechanism (CBMA), which represents a carbon tax to compensate for the carbon content on exports that have not been subject to some carbon price. The use of this mechanism is already considered in the European Union for 2026.
The consequences of the CBAM are still under intense debate, for example, regarding the potential consequences on the dynamic of international trade and the economic dynamism or employment mainly in developing countries.
The objective of this document is to present some of the risks involved in the Carbon Adjustment Mechanism (CBAM) for Latin America.
This Advocacy Note was produced by the South American Network on Applied Economics / Red Sur, with the aid of a grant from the International Development Research Centre (IDRC) of Canada, as part of the project: “Elevating and Connecting Research from Latin America and Africa to Inform the G20 and COP30: Public Debt, Care, and Climate Change”, between 2024 and 2025.