The European Union (EU) has implemented policies to reduce its emissions associated with climate change. However, its integration into global value chains has led to the emergence of the phenomenon known as “Climate Dumping.”

To prevent this, the EU has introduced deterrent tariff measures and compensation mechanisms such as the Carbon Border Adjustment Mechanism (CBAM). The aim of these measures is not only to control the EU’s actual emissions in its consumption of carbon-intensive products produced outside the Union, but also to influence countries with less stringent climate regulations to accelerate the global energy transition — a strategy known as the “Brussels Effect.”