Environmental or Fiscal? A Contribution to the Debate on the Legal Basis of the European Union’s Carbon Border Adjustment Mechanism

The EU Carbon Border Adjustment Mechanism (CBAM) is a focal point in ongoing legal and policy discussions. This article examines whether the CBAM is an environmental or fiscal measure, assessing its legal basis under articles 192(1) and 192(2) of the Treaty on the Functioning of the European Union, its policy objectives, design and implications for EU competence and transatlantic trade.