A Concept of «Carbon Leakage» as a Basis for EU Cross-Border Carbon Adjustment

The article explores the validity and assesses the consequences of the proposed introduction by the European Union of the cross-border carbon adjustment (CBAM). The concept of «carbon leakage» as the main argument in support of the CBAM is analyzed, its vulnerability is addressed. The authors argue that the introduction of CBAM is also unjustified legally, since it contradicts the provisions of international law, including the UN Framework Convention on Climate Change, the Paris Climate Agreement and the WTO agreements. Recommendations are proposed for hedging strategic risks for the Russian economy associated with the CBAM initiative. It is indicated, that in order to effectively counteract the introduction of CABM, it is important to consider the experience of resolving disputes between the EU and other countries regarding the introduction by the latter in 2012 of a «carbon levy» for foreign airlines flying to the EU. The authors consider that in order to effectively counter the new tax initiative, it is advisable to bring the problem for discussion on the platforms of the United Nations Industrial Development Organization (UNIDO) and the United Nations Conference on Trade and Development (UNCTAD). The profile of both organizations is fully consistent with the problem, which makes it possible to have a qualified discussion of a new carbon tax involving all countries − its potential payers, as well as to prevent its introduction.