Document Type : Article
Authors
1 Assistant Prof., Department of Public Law, Faculty of Law and Political Science, University of Tehran, Tehran, Iran
2 .A. Student in International Trade and Economic Law, Faculty of law and Political Science, Univeristy of Tehran, Tehran, Iran
Abstract
The European Union recently adopted a regulation establishing a mechanism requiring the importers of the products made by heavily polluting industries to pay the carbon border adjustment tax to make the carbon cost of imports comparable to domestic production and safeguard the EU's climate goals. As the first of its type, it is now at the center of discussion regarding its compatibility with the WTO regulations and the Paris Agreement, its impacts on countries' foreign trade, and ways countries can adapt and respond to it. This article aims to demonstrate how that mechanism works, examine whether it is compatible with international legal requirements, and answer how Iran can respond to it. Having used the descriptive-analytical method of research and collected information from both library and documentary sources, this article finds that following the world changes, Iran's foreign trade would be affected concretely, recommending some ways Iran can adapt and respond, including establishing a carbon tax mechanism, establishing low-carbon facilities and equipment, and realizing the requirements of a low-carbon economy embedded in the Iranian 6th five-year economic, social and cultural development plan.
Keywords
- The EU Carbon Border Adjustment Measure (CBAM)
- CBAM Certificate
- The EU Emissions Trading System
- The EU Climate Change Policies.
Main Subjects
English
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