To this aim, a useful tool would be a regular stocktaking of countries’ average carbon prices and of the share of emissions covered in order to facilitate the achievement of a harmonised global level for the carbon price.
CBAs have important potential benefits but also face several operational hurdles: from the difficulty in evaluating the emissions embodied in trade flows, to their compatibility with international trade rules and the risk of giving origin to a “green protectionism”, which could heighten geopolitical tensions, negatively affecting global trade and investment.