EU carbon border tax will do little to cut emissions, ADB study says

A European Union plan to impose tariffs on high-carbon imports could hurt developing countries in Asia but is unlikely to lead to big reductions in greenhouse gas emissions, the Asian Development Bank (ADB) said in a report published on Monday. The Carbon Border Adjustment Mechanism (CBAM) was introduced to address concerns that the outsourcing of manufacturing had put large parts of the EU's supply chain beyond the reach of its emissions trading scheme (ETS), a situation described as "carbon leakage". It was designed to level the playing field and make foreign suppliers pay the same carbon price as domestic ones,…