With the French government making it a priority to conclude a broad agreement on the Carbon Border Adjustment Mechanism (CBAM) by the end of its European Council presidency in June, leading green trade experts have drafted a text to guide the next stage of discussions at EU level.

Analysts from the Green Trade Network (GTN), which represents more than 20+ European research organisations including BC3, E3G, ECCO, Europe Jacques Delors, IEEP, SEI and Wise Europa, say four key principles should be followed by policymakers to ensure the mechanism will be fair and effective:

• Must be non-protectionist and WTO-compliant
• Must strengthen climate action
• Must be built on transparent governance and robust verification
• Must be carefully integrated in broader climate diplomacy

The full paper, which can be read/downloaded here, sets out how these principles might be achieved.