Insight
European CBAM - Implications for global refining
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
The EU reached a provisional agreement on a first-of-its-kind Carbon Border Adjustment Mechanism (CBAM) in December 2022. The CBAM is part of the ‘Fit for 55’ climate package, the EU’s policy commitment to reduce emissions to at least 55% from 1990 levels by 2030. A carbon border tax is an import duty based on a commodity’s embedded carbon emissions. CBAM aims to avoid carbon leakage by equalising the carbon costs of production for EU and non-EU products, and phases in as the carbon ETS free allowances phase out. For the refining sector, Wood Mackenzie’s long-term refined products outlook already includes the impact of the EU CBAM - our base case assumes CBAM will phase in for European refining between 2028 and 2035. This insight utilises Wood Mackenzie's Refinery Supply Model (RSM) to explore how the CBAM impacts both EU and non-EU refiners, and how the levy readjusts global trade flows.
Table of contents
- No table of contents specified
Tables and charts
No table or charts specified
What's included
This report contains:
Other reports you may be interested in
Insight
European power price scenarios: will Russian gas and LNG come back?
The US is pushing to broker a deal to end the Russia-Ukraine war – what could this mean for Europe’s power markets?
$5,000
Insight
The dawn of future for Article 6
Implications for global carbon markets after COP29
$1,250
Insight
Webinar: The long-term outlook for global refining in the face of the energy transition
On 2 September Wood Mackenzie explored the outlook for global and regional oil product markets through to 2050.
$900
