Latin America and the Caribbean (LAC) currently face modest exposure to the European Union’s Carbon Border Adjustment Mechanism (CBAM), which imposes carbon costs on imported goods. While the region benefits from this limited impact, upcoming domestic carbon pricing schemes are expected to further lower production costs for exporters.
By internalising carbon costs, LAC producers can improve the carbon intensity of their goods, creating a price advantage in the European market. Analysts suggest that these policies could translate into higher export volumes to the EU, turning the region’s low CBAM exposure into a strategic export benefit.
Source: Carbon Pulse
