In economic terms, Bulgaria is highly dependent on carbon-intensive production and is particularly vulnerable to the risk of these productions being shifted to countries with weaker environmental standards, with the corresponding loss of jobs and a decline in economic activity. It is important for the Bulgarian state to closely monitor the implementation of the Carbon Border Adjustment Mechanism (CBAM) and to build mechanisms to assess its impact on the national economy. This is stated by the Economic and Social Council in its analysis on the topic "CBAM: challenges facing Bulgarian industry and ways to overcome them".

Among the main risks associated with the increase in the cost of production is the so-called "climate dumping" - when third countries, by their own choice or due to lack of capacity, lag behind in the implementation of environmental standards and thus maintain lower production costs and more competitive prices. In response to this problem, the EC introduced CBAM to ensure equal treatment between European and foreign producers.

Editor: Miglena Ivanova

Publication in English: Al. Markov

Photo: Economic and Social Council