The Implementation of CBAM in the Nordic Countries - Finland, Sweden and Denmark

The report examines how the EU’s Carbon Border Adjustment Mechanism (CBAM) affects Finland, Sweden, and Denmark, focusing on competitiveness and the green transition. CBAM aims to prevent carbon leakage by aligning import carbon costs with the EU ETS. Nordic industries benefit from low emission intensity but still face structural cost challenges. Including indirect emissions could improve fairness but add complexity. Overall economic impacts are modest, though sectoral effects vary. CBAM is expected to shift trade toward cleaner production and support green industrial development. National implementation differs across the three countries. Key recommendations include preparing for indirect emissions, influencing EU rules, expanding CBAM to new sectors, streamlining administration, and improving emissions data systems.