The European Green Deal that was presented by the European Commission in December 2019 aims to make the continent as the first carbon-neutral by the end of mid-century. As part of this strategy, a border carbon adjustment is being considered, which would increase the cost of carbon-intensive goods imported to the European Union (EU). This will reverse the carbon leakage debate from Europe’s border to countries that export goods to the EU. Commodities with a high share in energy costs that source its energy demand from fossil fuels will be impacted the most.
