Carbon Border Adjustment Mechanism within the Framework of the World Trade Organization

This article analyses the European Union's Carbon Border Adjustment Mechanism (CBAM) from the perspective of international trade law, particularly the rules of the World Trade Organization (WTO). The study examines CBAM's compatibility with core GATT principles — Most-Favoured-Nation Treatment, National Treatment and Tariff Commitments — as well as the possibility of justification under the General Exceptions clause of GATT Article XX. It further explores the challenges CBAM poses within international climate law, in particular the principle of common but differentiated responsibilities (CBDR-RC) and its impact on developing countries. The findings suggest that full compliance of CBAM with WTO rules requires reforms such as redistribution of revenues and a phased approach to implementation.