European Union flags flutter outside the European Commission headquarters in Brussels, Belgium.

Publication Type

Russia's invasion of Ukraine has cemented the European Union's commitment to carbon pricing

Policy Briefs 23-13
Photo Credit: REUTERS/Yves Herman


The European Union managed to overcome Russian energy blackmail in 2022 and used the political motivation from this national security crisis to accelerate its decarbonization process. The planned dramatic increase in the scope of carbon pricing in the European Union can herald the total decarbonization of sectors covered in the EU Emissions Trading System and expand into important new ones. The interplay between the EU carbon border adjustment mechanism (CBAM) and the US Inflation Reduction Act may cause transatlantic trade friction. But these two approaches could also offer a path to greater cooperation. Kirkegaard outlines proposals for how both the European Union and the United States can implement additional policies to secure their comprehensive decarbonization.

Data Disclosure:

The data underlying this analysis can be downloaded here [zip].

More From