Publication:
The impact of the implementation of EU’s Carbon Border Adjustment Mechanism on North Macedonia

Loading...
Thumbnail Image
Files in English
English PDF (776.33 KB)
187 downloads
English Text (44.87 KB)
10 downloads
Date
2024-11-25
ISSN
Published
2024-11-25
Author(s)
Editor(s)
Abstract
This note specifically focuses on explaining the impact of the application of the EU’s Carbon Border Adjustment Mechanism (CBAM) on the economy of the Republic of North Macedonia as requested by the authorities in March 2024. It builds on the detailed work delivered under the North Macedonia Climate Public Finance Review that simulates the results of the carbon tax introduction.
Link to Data Set
Citation
World Bank. 2024. The impact of the implementation of EU’s Carbon Border Adjustment Mechanism on North Macedonia. © World Bank. http://hdl.handle.net/10986/42463 License: CC BY-NC 3.0 IGO.
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections

Related items

Showing items related by metadata.

  • Publication
    Leveling or Mining the Playing Field? Implementation Problems of Carbon-Motivated Border Adjustment Taxes
    (World Bank, Washington, DC, 2009-12) Jensen, Michael Friis
    Climate change policies and trade policy are on a collision course. Border tax adjustments are at the center of the debate and are being considered in many Organization for Economic Co-operation and Development (OECD) countries, notably the United States and the European Union (EU). They will tax carbon emissions at the border with the aim of leveling the playing field between countries with different carbon emission limits. Border tax adjustments may be justified theoretically, but the challenges of implementation and its associated costs and incentives are a key determinant of the outcome. Implementation depends on complex administrative arrangements and controversial calculations of the embedded carbon in imported goods. Border tax adjustment schemes might mine rather than level the playing field. Implementation problems invite vested interests to influence the policy process and divert border adjustment taxes towards protectionist uses. Decision makers and academics alike have produced little evidence on implementation problems but appear to discuss the very complex border tax adjustment scheme with the implicit assumption that implementation problems can be solved if the need arises. The implementation problems are linked to the difficulties of calculating embedded carbon. This paper discusses a key question: how accurately can we measure embedded carbon and what will the inherent uncertainty do to trade policy when it triggers political economy forces?
  • Publication
    Implementation of REDD+ Mechanisms in Tanzania
    (World Bank, Washington, DC, 2014-03) Cordero Cordero, Paula
    This paper explains the major issues and lessons derived from the national forest management program and REDD+ initiatives in Tanzania. It finds that addressing the most important drivers of forest degradation and deforestation, in particular the country energy needs and landownership, is essential for success in reducing emissions regardless of the type of program implemented. It also finds that, through the national program, forest users have learned to maximize profit from the sustainable use of the forest; however, the program reports great variability in the success of forest conservation. REDD+ may complement the national program by adding funding and other resources to start projects at the local level while giving additional payments for the permanence of carbon stocks may help to improve the social outcomes of those villages practicing sustainable forest management. However, a careful characterization of the national projects is necessary to generalize how REDD+ can be effectively implemented so that additional economic and environmental benefits are generated over what the national program is already achieving. Addressing this issue is key for identifying the conditions under which REDD+ achieves environmental additionality in Tanzania.
  • Publication
    FYR Macedonia Green Growth Country Assessment
    (Washington, DC, 2014-03) World Bank Group
    This green growth country assessment for Former Yugoslav Republic (FYR) Macedonia aims to define the outlines of a green growth path and the initial steps along that path. According to the World Bank's recent flagship report, green growth is 'growth that is efficient in its use of natural resources, clean in that it minimizes pollution and environmental impacts, and resilient in that it accounts for natural hazards and the role of environmental management and natural capital in preventing physical disasters.' While most countries might agree that such growth is a worthy goal, determining what a green growth path might mean for a particular country is a significant challenge. Green growth can be defined more precisely, as economic growth with more sustainable use of natural resources (minerals, water and clean air, and biodiversity), with proper consideration of mitigation of greenhouse gas emissions; with attention to adaptation to a changing climate; and with more focus on innovation and green jobs to enhance benefits flowing from the technological innovation and new industries spurred by a shift to green growth. This report takes a practical approach to identifying specific challenges and opportunities FYR Macedonia faces in building its green growth future and to present them in a form useful for decision makers. The report will address mitigation, adaptation, and the most immediately challenging resource sustainability issue, clean air. This report summarizes analytic work undertaken in sectors and on issues selected as critical for defining and understanding the green growth path of the country, with an emphasis on climate action. Chapters of the report start with an overview of the relevant challenges to green growth of climate adaptation and mitigation, and then set out the methodology applied the findings that emerged, and consequent recommendations. The nine sectors and issues that constitute the components of the green growth country assessment are represented in the opening graphic in this summary.
  • Publication
    Maximizing the World Bank Group’s Impact in the Middle East and North Africa
    (World Bank, Washington, DC, 2015-04) World Bank Group
    This report provides an overview of the World Bank Group’s engagement in the Middle East and North Africa (MENA) region, highlighting the new operating model of the World Bank Group. In particular, the report provides insight on the key challenges and strategic engagement of each sector (Global Practice) in MENA and details some of the key cross-cutting challenges that countries face. This report serves as a basis to convene international thought leaders, as well as internal and external stakeholders, in the context of developing a new strategy for the Middle East and North Africa region later this year. The region faces three challenges in particular: (a) long-standing distortions that have generated jobless growth and poor service delivery as well as low financial access and inclusion; (b) severe imbalances that threaten macroeconomic stability; and (c) deep political and social tensions, at times escalating into violent conflict. The World Bank Group’s current engagement supports four key pillars: (a) strengthening governance; (b) ensuring economic and social inclusion; (c) creating jobs; and (d) accelerating sustainable growth. Progress on these pillars can be made through a two-pronged approach focused on addressing the immediate needs arising from humanitarian crises throughout the region while also giving sustained attention to the investments and reforms needed for medium- and long-term development. This two-pronged approach is necessary to help governments cope with immediate pressures on already fragile institutions and at the same time develop long-term strategies to address deep-seated issues that have hindered inclusive growth and prosperity for decades. This report details nine specific cross-cutting challenges: climate change; decentralization; disaster risk management; fragility, conflict and violence; fuel subsidies and social safety nets; gender; governance and service delivery in health and education; private sector development and job creation; and public-private partnerships. Looking ahead, responding to the changing realities on the ground, the World Bank Group is rethinking its regional strategy in order to maximize its impact in the Middle East and North Africa. This new strategy, which is currently under preparation, will aim to step up the Bank Group’s engagement in the region in order to achieve shared growth and prosperity, as well as work with partners to convene change in the region.
  • Publication
    10 Years of Experience in Carbon Finance : Insights from Working with the Kyoto Mechanisms
    (Washington, DC: World Bank, 2010-05-01) World Bank
    Under the Kyoto Protocol to the United Nations Framework Convention on Climate Change (UNFCCC), the industrialized countries adopted quantified emission reductions obligations. Marking the 10th anniversary of the establishment of the World Bank Prototype Carbon Fund (PCF) the world's first global carbon fund, this report seeks to take stock of the World Bank's experience of working with the Kyoto Protocol's project-based mechanisms over the past decade. The Clean Development Mechanism (CDM), as the much larger system in terms of projects, emission reductions and host countries, is the basis for much of the report's discussion. Joint Implementation (JI) is also discussed. Policy-makers and negotiators are working on advancing the policy framework and the regulatory structures to mitigate greenhouse gas (GHGs) at greater scale. Furthering the use of market instruments should incorporate the lessons of the past into future designs, making full use of the experience and learning that has been gained. This will mean building upon the successes of the current CDM and JI regulatory frameworks, addressing weaknesses, and abandoning what is not working. This publication seeks to make a constructive contribution to this debate, in full respect of the ongoing international climate change negotiations, by providing insights and recommendations from a practitioner's experience and perspective.

Users also downloaded

Showing related downloaded files

  • Publication
    Tanzania Economic Update, Issue 21 -Harnessing the Opportunity for a Climate-Smart and Competitive Livestock Sector in Tanzania
    (Washington, DC: World Bank, 2024-08-21) World Bank
    Tanzania has managed a steadily robust growth path amid multiple external shocks, with low and stable inflation by regional standards. While poverty reduction has progressed slowly, the government increased public spending on goods, services, and transfers during the first eight months (8M) of FY2023/24 to enhance the provision of priority social services. Domestic revenue observed double-digit growth, indicating the government’s commitment to revenue mobilization and fiscal consolidation. The current-account deficit narrowed, driven by increased imports and a surge in foreign exchange earnings from the tourism sector. However, foreign exchange challenges persist, which has motivated the Bank of Tanzania (BoT) to raise the policy rate and implement other prudent monetary policies. Over the medium term, the economy is set to grow at around 6 percent, supported by escalated private investments resulting from a strengthened business environment. A positive macroeconomic outlook and an enhanced agricultural productivity have contributed to the estimated decline in poverty. Major risks to the outlook include incomplete implementation of reforms, climate change, and a deterioration of the global economy.
  • Publication
    Green Is Less Greedy
    (Washington, DC: World Bank, 2024-11-26) Poltoratskaia, Viktoriia; Fazekas, Mihaly; Quintero, Maria Fernanda; Schiffbauer, Marc
    Although green public procurement has been established as a desirable policy goal across the globe, especially in the European Union, its scope and impacts remain severely understudied. This paper provides insights into the prevalence and structure of green public procurement in Bulgaria, which is a sustainability laggard within the European Union and hence a least likely champion of green public procurement. The paper also estimates the impacts of green procurement on traditional procurement and economic outcomes: competition, corruption risks, and overall productivity. Using novel data and more comprehensive methods than previous studies, the analysis finds that green public procurement amounted to about 10 to 20 percent of total public procurement spending in Bulgaria in 2011–19. Most descriptors and requirements of green public procurement are found in titles, technical requirements, and product descriptions. Green criteria in award criteria texts, which are mainly used for flagging green public procurement in the literature, have been marginal in comparison. Green public procurement is estimated to improve competition for government contracts among firms, for example by increasing the prevalence of market entrants by 3 to 7 percentage points. Green public procurement contracts are also less prone to corruption risks. For example, they are 0.6 to 1.5 percentage points less likely to receive a single bidder. Finally, green public procurement enhances the efficiency of resource allocation in the economy by helping to channel public resources to more productive firms, for example to those that have 14 percent higher labor productivity. This effect is at least in part explained by the positive interaction between green public procurement and the lower risk of corruption. The findings strengthen the case for pursuing green public procurement goals as they offer synergies with traditional public procurement goals.
  • Publication
    Migration, Trade, and Foreign Direct Investment in Mexico
    (Oxford University Press on behalf of the World Bank, 2005-09-01) Aroca, Patricio; Maloney, William F.
    Part of the rationale for the North American Free Trade Agreement (NAFTA) was that it will increase trade and foreign direct investment (FDI) flows, creating jobs and reducing migration to the United States (U.S.). Since poor data on illegal migration to the United States make direct measurement difficult, data on migration within Mexico, where census data permit careful analysis, are used instead to evaluate the mechanism behind predictions on migration to the United States. Specifications are provided for migration within Mexico, incorporating measures of cost of living, amenities, and networks. Contrary to much of the literature, labor market variables enter very significantly and as predicted once possible credit constraint effects are controlled for. Greater exposure to FDI and trade deters outmigration, with the effects working partly through the labor market. Finally, some tentative inferences are presented about the impact of increased FDI on Mexico- U.S. migration. On average, a doubling of FDI inflows leads to a 1.5 to 2 percent drop in migration.
  • Publication
    Armenia SWM Sector Assessment and Reform Plan
    (Washington, DC: World Bank, 2024-11-25) World Bank
    This report presents an analysis of Yerevan's waste management system. It investigates the quantities of municipal waste generated and makes a projection what would be the waste generation in the next 20-year period of time. It also provides a description of the solid waste management (SWM) system in place in terms of operations, infrastructure, and facilities in place, institutional arrangements, current costs incurred, and financing of the waste management system. Besides, this Report tries to provide a critical overview of the municipal waste management sector in Yerevan and outline specific areas for improvement. Four different scenarios of an improved waste management system are analyzed in the report. The analysis points to potential efficiency gains that could be achieved and presents the cost implications of improved waste operations. The report concludes with recommendations about the steps that could be undertaken by the city to improve the overall performance of the waste management system in the short- and medium terms.
  • Publication
    Nepal Country Climate and Development Report
    (World Bank, Washington, DC, 2022-09) World Bank Group
    This Country Climate and Development Report (CCDR) identifies ways that Nepal can achieve its overall development objectives while fostering its strategic ambition to transition to a greener, more resilient, and inclusive development pathway. This report is organized as follows: Chapter 1 captures the current situation in the country with respect to climate impacts and risks, emission sources, and opportunities for integrated climate change adaptation and mitigation. Chapter 2 describes the government’s response, through sectoral and economywide commitments, laws, and regulations. Chapter 3 assesses the impacts of climate change on the macroeconomy and road transport systems, given their critical role to connectivity. It also analyzes the links between climate change and air pollution, poverty, health, social inclusion, and community resilience. Chapter 4 presents pathways to transition to resilience, looking at integrated management of landscape systems comprising water, agriculture, and forests as well as strengthening climate and disaster risk management governance. Chapter 5 analyzes pathways to transition to decarbonization, primarily the potential for hydropower expansion domestically and in the region. It also looks at transport and urban opportunities to reduce emissions while enhancing resilience and adaptation co-benefits. Chapter 6 discusses how to scale up financing for resilience, hydropower, and other opportunities, given the limitations of the country’s fiscal space. Chapter 7 presents a prioritization framework for the most transformational climate action with seven ‘policy packages’—one for each priority transition and each key enabler—that contain specific recommendations for how to move from analysis to action.