Résumé
European industry that has to pay for its carbon emissions under the EU Emissions Trading Scheme (EU ETS-EU) is penalised when faced with international competitors that are not subject to the same constraint. An adjustment measure (the introduction of a Carbon Border Adjustment Mechanism, CBAM) would help to restore fair competition. However, the issue is politically sensitive in the international arena, in trade and environmental negotiations, where the EU is exposed to the double criticism of protectionism and unilateral action. The political reception will depend on the narratives that the EU and its Member States are able to impose on their partners, and on their ability to listen (and influence design compromises) in order to avoid a sense of 'fait accompli'. The issue at stake goes beyond carbon adjustment alone to encompass the EU's entire trade policy, its development policy and its role in the Paris Climate Agreement.