In collaboration with the Institute of Energy Economics, Japan
Please join the Global Energy Center and the Institute of Energy Economics, Japan (IEEJ), for a private, off-the-record workshop next Thursday, January 14th, from 8:00-10:00 am EST / 10:00-12:00 pm JST to discuss carbon border adjustment (CBA) mechanisms and their implications. The event will feature Dr. Takashi Homma, senior researcher of the Research Institute of Innovative Technology for the Earth (RITE), and Dr. Tim Fitzgerald, associate professor at Texas Tech University.
This second workshop will examine the economic and political consequences of CBA mechanisms domestically and at the international level. How will CBAs impact the economies of other countries? Which countries will be most affected and why? Are there going to be political repercussions at the international level after the implementation of a CBA?
Carbon border adjustment (CBA) mechanisms are extremely complex measures. The implementation of a CBA faces many challenges on technical, legal, and political levels, but also raises concerns for its potential consequences and negative or positive externalities. Each country will be impacted differently, and the mechanism’s impact will also vary depending on what kind of system is implemented, whether the mechanism is established cooperatively or unilaterally, what sectors it applies to (industry, energy, agriculture, etc.), and who the country’s major trading partners are. Domestically, countries that implement a CBA will likely have a parallel carbon pricing system in place, and according to the price of its system and of the effect of carbon leakage in that country, the consequences may vary significantly. Because a CBA mechanism has not yet been established, it is difficult to foresee every potential repercussion, and it is critical to open the discussion on its potential political and economic repercussions both at the domestic and at the international level in order to support and facilitate its future implementations.
For the second workshop in this 4-workshop series, the Atlantic Council and IEEJ will examine the consequences of CBA development and the influence of CBAs on economic and political relations between key markets, with a particular emphasis on the United States and Japan. This workshop will include both an economic analysis designed to model possible scenarios of CBA implementation, as well as a review of the political ramifications within CBA-enforcing countries as well as with their main trading partners.
This event will be conducted over Zoom. Participants will be able to join the conversation using the chat feature to submit questions and comments during discussion. After the featured speakers have made their opening remarks, participants will also be welcome to use the ‘raise your hand’ feature, and the moderator will ask them to unmute themselves to ask their question or make a comment.