The European Union
(EU) Carbon Border Adjustment Mechanism (CBAM) offers a practical solution to
prevent carbon leakage, and its success has sparked discussions about
implementing similar regulatory mechanisms in other countries. These
discussions have been limited to the adoption of EU-style CBAM in developed
countries, overlooking the significant carbon leakage challenges faced by
highly industrialized developing countries (HIDCs). This article argues that
EU-style CBAMs are equally essential in HIDCs to achieve carbon neutrality and
emphasizes the role of WTO law in facilitating their international adoption. It
explores the motivations for HIDCs to implement such mechanisms and analyses
how WTO law can support their dissemination, contributing to global climate
governance. The key contribution of this article is its pioneering exploration
of the potential of establishing EU-style CBAMs in HIDCs and the role of WTO
law in driving this regulatory shift. Additionally, it addresses the
application of the principle of common but differentiated responsibilities
(CBDRs) in potential CBAM-related disputes, offering a fresh perspective that
complements existing research on the EU CBAM’s compliance with WTO rules.