Assessing the Impact of the EU’s Carbon Border Tax Adjustment Mechanism on Tanzania’s LNG Exports
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Assessing the Impact of the EU's Carbon Border Tax Adjustment Mechanism on Tanzania's LNG Exports

The European Union's (EU) proposed Carbon Border Tax Adjustment Mechanism (CBAM) aims to mitigate carbon leakage by imposing a carbon tax on imports of certain commodities that are not taxed internally within the exporter's country at a comparable level. This policy brief evaluates the potential impact of the CBAM on Tanzania’s promising liquefied natural gas (LNG) project. It offers strategic recommendations for mitigating adverse effects and enhancing Tanzania's export competitiveness.

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