Introduction: In the fourth episode of the Unlocking the Energy Trilemma Podcast, our guest, Mr. Maximo Miccinilli, leads a discussion on the effects of the new EU Carbon Border Adjustment Mechanism (CBAM). The podcast was moderated by our managing director, Mr. Ravi Krishnan and Mr. Jose A. Martinez our partner who also covers the implications of CBAM in the global trade and industry. The podcast was completed on April 29, 2024. Here are the questions discussed in the episode. Click on the link above to listen to the podcast directly.

Could you share your favourite figure or statistic that encapsulates the essence of CBAM for our discussion today?

For the benefit of our audience, especially those from the United States, could you explain the purpose of CBAM (Carbon Border Adjustment Mechanism) as introduced by the European Union?

Is it accurate to say that CBAM aims to level the playing field for domestic producers within the EU by imposing an additional charge on CO2 emissions associated with products sold there, while also encouraging global companies to embrace more sustainable practices?

What do you think about the challenge of traceability in the context of CBAM? In an era dominated by cloud computing and blockchain technology, how feasible is it to trace not only physical goods but also electrons, especially those involved in electricity?

What is the international response to CBAM from countries such as Brazil, China, India, South Africa, and North American countries like Canada and the US? Could you share your perspective on how these nations have reacted to the implementation of CBAM by the European Union?

Could you please clarify the timing for CBAM implementation for producers worldwide who are affected by this policy? When is CBAM likely to take effect for industries that export to the EU, such as cement, steel production, and power generation?

Who will cover the costs of CBAM? Will European citizens ultimately bear the expenses of importing electricity from the UK during France power shortages or purchasing LNG from the US, after accounting for the higher tariffs imposed by CBAM?

Do you believe that technology is presently available in a cost-effective manner to meet the required 55% reduction in CO2 emissions from industries, as specified by CBAM, with a focus on scope one emissions? Whether it involves local electric utilities adopting strategies like carbon capture and storage, switching to hydrogen combustion, or employing other methods to reduce their emission footprint, do you think these technologies are sufficiently advanced and accessible?

If you had the power to use CBAM or related policies as a catalyst to unlock the energy trilemma, what specific action or change would you implement to achieve that goal?