UDC 339.5

Bondarenko N.E.¹ (Moscow, Russian Federation) – bondarenko.NE@rea.ru

¹Plekhanov Russian University of Economics

Abstract. The article is dedicated to studying the Carbon Border Adjustment Mechanism (CBAM) and its impact on global value chains (GVCs). CBAM is considered an important policy tool aimed at reducing carbon emissions and ensuring sustainable development within the global economy. The primary goal of the research is to conduct a comprehensive analysis of CBAM’s effectiveness in reducing the carbon footprint, promoting the transition to environmentally friendly technologies, and transforming environmental standards in global production chains. The article explores various aspects of CBAM implementation, including the harmonization of international environmental standards, the development of active international cooperation, and support for developing countries facing difficulties in adapting to new environmental requirements. The paper emphasizes that CBAM implementation could lead to the redistribution of production capacities towards regions with stricter environmental regulations, which in turn may result in economic costs, political disagreements, and trade conflicts. The article provides a detailed analysis of possible negative consequences for international trade and global economic relations. Mechanisms for minimizing the adverse effects of CBAM are considered, including the introduction of incentive measures to support the transition to clean technologies and the development of international standards for monitoring and reporting carbon emissions. Special attention is given to the issue of fair distribution of environmental costs and risks among countries, as well as the creation of effective dispute resolution mechanisms. The article offers recommendations for improving environmental practices in GVCs and creating incentives for companies to reduce their carbon footprint. It concludes that a comprehensive approach is necessary for the successful implementation of CBAM, including effective coordination of efforts at the international level and support from international organizations and national governments. The study’s results confirm that CBAM can serve as a catalyst for the formation of new business models aimed at sustainable development and reducing the negative impact on the environment.

Keywords: carbon frontier regulation, global value chains, sustainable development, carbon footprint, environmental standards.

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For citation: Bondarenko N.E. Carbon boundary regulation mechanism as a tool for transforming environmental standards in global value networks. CITISE, 2024, no. 3, pp. 409-419.