Basedow, R. (2026). Carbon border adjustment mechanisms and international emission verification: how to leverage unilateral and mutual recognition instruments? Journal of International Economic Law, [In Press]

The economic viability of Carbon Border Adjustment Mechanisms (CBAMs) hinges, in part, on the design of cost-effective emission verification frameworks. Yet, an analysis of the EU CBAM – the most advanced mechanism – highlights important design weaknesses in this respect. Against this background, this study discusses how states and businesses have managed comparable cross-border conformity assessment and certification challenges through unilateral and mutual recognitions instruments (MRIs) for goods subject to health, safety, and environmental regulations including so-called credence goods. Building on this comparison, this study analyses how policymakers may leverage MRIs to lower CBAM-related trade costs and frictions.