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A new era of Climate Protectionism? : How do the United States frame the EU´s Carbon Border Adjustment Mechanism?

Stephansson, O.S. (2023) A new era of Climate Protectionism? : How do the United States frame the EU´s Carbon Border Adjustment Mechanism?

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Abstract:The European Union (EU) has as part of its "Fit for 55" legislative package introduced a Carbon Border Adjustment Mechanism (CBAM), which will enter into application in its transitional phase on 1 October 2023. This paper analyzes if the CBAM is perceived as “an instrument of climate leadership on the path towards global decarbonization” or “a new trade barrier under the guise of preventing global warming”. Three hypotheses are formulated based on different theories of international relations: Hypothesis 1 focuses on the constructivist perspective and highlights the role of identity and perception of climate leadership, Hypothesis 2 examines the realist perspective of prioritizing economic interests, and Hypothesis 3 aligns with the functionalist view of cooperation among states. The analysis utilizes a range of data sources, including documents from the U.S. Trade Representative, perspectives of Republican and Democratic Senators, and Transatlantic Trade Council (TTC) meetings. The findings reveal that the U.S. predominantly interprets the EU CBAM as an instrument of climate leadership rather than a trade barrier and suggests that the U.S. are unlikely to actively oppose the implementation of the EU CBAM and instead rather is likely to adopt a cooperative stance by introducing its own Border Carbon Adjustment.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:88 social and public administration
Programme:Management Society and Technology BSc (56654)
Link to this item:https://purl.utwente.nl/essays/96191
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