Impact of the EU Carbon Border Adjustment
Mechanism on Emerging Markets

This project is a consulting-style report that analyses how the EU’s new Carbon Border Adjustment Mechanism (CBAM) will affect emerging economies in Asia and Africa. CBAM introduces a carbon price on imports of carbon-intensive goods such as steel, aluminium, cement, fertilisers, and electricity, aligning them with costs faced by European producers under the EU Emissions Trading System.

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The report assesses which countries and sectors are most exposed, models trade and financial impacts under different carbon price scenarios, and presents country case studies (China, India, Egypt, Mozambique, and others). It explores strategic implications for companies and governments, highlighting how competitiveness is shifting towards low-carbon production.

The project concludes with actionable recommendations for exporters, policymakers, and the international community, showing how CBAM is not only a challenge but also a catalyst for industrial decarbonisation.