The Global Impact of EU Climate Policy

A new Policy Report evaluates the impact of the newly introduced Carbon Border Adjustment Mechanism (CBAM) on the EU’s 2030 emission reduction target and analyze different climate clubs with the EU at their core. Findings indicate that EU climate policies do not impose substantial costs, have a limited impact on global emissions, but generate substantial gains from avoided climate damages. The only modest global emission reduction is primarily due to the EU’s relatively small share in global emissions.