Carbon Pricing in the Fight Against Climate Change: The Impact of the Carbon Border Adjustment Mechanism on Public Revenues and Revenue Redistribution

This study focuses on the fiscal aspect of the Carbon Border Adjustment Mechanism (CBAM) introduced by the European Union (EU) and aims to examine the use of revenues from the mechanism for developed and developing countries. The CBAM aims to prevent carbon leakage and promote environmental sustainability through carbon pricing, while at the same time generating significant public revenue for the EU. The envisaged use of these revenues in strategic areas such as green transformation, sustainable infrastructure projects and similar is an important step in contributing to the EU's environmental goals. However, given the risk that underdeveloped and developing countries are disproportionately affected by CBAM, the need for effective use of these revenues in these countries becomes even more evident. In this context, the effective use of CBAM revenues in less developed and developing countries is considered as an important tool to support not only environmental sustainability but also the economic and social transformation processes of these countries.