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Navigating the CBAM Transitional Period: Understanding the Latest Developments, and Enhancing Preparedness

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  • Rim Berahab

Abstract

The Carbon Border Adjustment Mechanism (CBAM) has emerged as an important policy tool in the European Union's (EU) efforts to combat climate change and prevent carbon leakage. By putting a price on carbon emissions embedded in certain goods imported into the EU, the CBAM has the potential to impact economies worldwide, including Morocco. This policy brief examines recent CBAM developments and assesses their implications for Morocco's economy and climate change efforts. It analyzes the challenges that the Moroccan economy may face, including implications for costs, competitiveness, compliance requirements, supply chain adjustments, and increased risk exposure. The brief also highlights the opportunities available to Morocco, and the importance of implementing targeted policies, strengthening the regulatory framework, promoting capacity-building initiatives, and fostering cooperation to navigate the CBAM transition period effectively. By understanding the complexities of CBAM and adopting proactive strategies, Morocco can position itself to capitalize on the opportunities and overcome the challenges presented by this transformative policy.

Suggested Citation

  • Rim Berahab, 2023. "Navigating the CBAM Transitional Period: Understanding the Latest Developments, and Enhancing Preparedness," Policy notes & Policy briefs 2018, Policy Center for the New South.
    • Handle: RePEc:ocp:ppaper:pb29-23
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    File URL: https://www.policycenter.ma/sites/default/files/2023-07/PB_29_23%20%28Rim%20Berahab%29.pdf
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    References listed on IDEAS

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    1. Li, Yongbo & Barrueta Pinto, Mark Christhian & Kumar, D. Thresh, 2023. "Analyzing sustainability indicator for Chinese mining sector," Resources Policy, Elsevier, vol. 80(C).
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