CBAM: Implications for the Russian economy
The EU’s intention to introduce a carbon border regulation spurred a discussion about what implications could be expected for Russia. The very first estimates of the potential losses were very high, and therefore, under the pressure of the businesses concerned, Russian climate policies suddenly became much more proactive. However, those estimates were made for the CBAM regulations as anticipated by the analysts and researchers, rather than for the actually announced by the EU Сarbon Border Adjustment Mechanism (СВАМ). On July 14, 2021, draft CBAM regulation titled “Fit for 55” was disclosed as part of the EU regulation package. This paper aims to estimate the potential implications of the EU’s CBAM construct for the Russian economy.