{"id":9863,"date":"2023-06-08T00:01:45","date_gmt":"2023-06-07T22:01:45","guid":{"rendered":"http:\/\/webecpol.esade.edu\/publicaciones\/what-will-be-the-effect-of-the-new-eu-emissions-tax-on-imports-in-spain\/"},"modified":"2023-06-15T10:02:17","modified_gmt":"2023-06-15T08:02:17","slug":"what-will-be-the-effect-of-the-new-eu-emissions-tax-on-imports-in-spain","status":"publish","type":"publicaciones","link":"http:\/\/webecpol.esade.edu\/en\/publications\/what-will-be-the-effect-of-the-new-eu-emissions-tax-on-imports-in-spain\/","title":{"rendered":"What will be the effect in Spain of the new EU emissions tax on imports?"},"content":{"rendered":"

Energy-intensive sectors in the European Union pay for the environmental costs of their activities through an emissions allowance market, where each tonne of CO2 emitted has a specific price. To prevent these additional costs from putting European industry at a disadvantage compared with imports from third countries, a free quota was previously allocated to the sectors most exposed to competition. However, this removed the incentives for these sectors to decarbonize.<\/p>\n

To address this issue, the EU has adopted a Carbon Border Adjustment Mechanism (CBAM) to help balance decarbonization between European and foreign industries while maintaining the competitiveness of our companies. To this end, imported products will be taxed according to their emissions in order to level the playing field between local producers and third countries exporting to the EU. Despite their importance and potential to align incentives for decarbonization at the European and global levels, their impact needs to be assessed in two further dimensions:<\/p>\n

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  1. To what extent it reduces the competitiveness of European exports by increasing the cost of raw materials imported from third countries.<\/li>\n
  2. The extent to which it may drive up prices paid by EU consumers.<\/li>\n<\/ol>\n

    In this policy brief, we assess these potential effects using Spain as an example.<\/p>\n

    In examining how the increase in product costs associated with CBAM would be passed on to Spanish households and regions, we find that:<\/p>\n