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The CBAM’s Potential Impact on Australia-China Trade

Project Member(s): Shi, X.

Funding or Partner Organisation: Academy of the Social Sciences in Australia Inc
Academy of the Social Sciences in Australia Inc

Start year: 2023

Summary: This project will investigate four interrelated questions: 1) What is the dominant current trend in relation to the development of the carbon border adjustment mechanism, especially in countries/regions with substantial global influence - i.e., the United States and the European Union. (2) To what extent is there common ground between Australia and China’s position on the CBAM, given both countries’ energy sectors rely heavily on coal, and face the same need to phase down its use over the next 3-4 decades? (3) How is Australia-China trade likely to be affected by the implementation of CBAM? (4) Should Australia and China cooperate to coordinate their response to CBAM, and, more broadly, help Australia amplify its voice in the areas of global energy and climate governance?

FOR Codes: International trade policy, Environmental policy, legislation and standards, International trade and investment law, Climate change law