An EU Carbon Tax Will Upend The Global LNG Market

The global LNG market could face a sea change in prices and trade flows later this decade if the European Union includes LNG in its carbon border tax. The EU’s Carbon Border Adjustment Mechanism (CBAM), commonly known as the “carbon border tax,” was launched on October 1 in the first transitional phase for imports of several carbon-intensive groups of products into the European Union.       The first phase of the EU’s carbon import pricing legislation will not impose levies on the products—such will…