Title page 1

Contents 1

Abstract 2

Non-Technical Summary 3

1. Introduction 4

2. Design Features of the EU CBAM 7

3. Methodology and Data 10

3.1. CBAM Cost and Its Components 10

3.2. Data 12

4. Results 12

5. Discussion and Limitations 19

6. Conclusions 20

Annex A. CBAM Cost as a Share of GDP 21

Annex B. Product-Level CBAM Cost 22

References 24

Acknowledgements 27

Figures 8

Figure 1. EU ETS Prices and Free Allocation 8

Figure 2. CBAM Products as a Share of Total Trade 13

Figure 3. Trade in CBAM products 14

Figure 4. CO₂ Intensity of CBAM Products in Exporting Countries 15

Figure 5. The Trade-Weighted CBAM Cost 17

Figure 6. CBAM Cost Under Extended Scope 18

Figure 7. Average CBAM Cost on Exports 20

Boxes 10

Box 1. Timeline of the EU CBAM 10

Annex Tables 22

Table A. Product-Level CBAM Cost 22

Annex Figures 21

Figure A. CBAM Cost as a Share of GDP 21