A new report from PMCG, supported by the EU and UNDP, assesses how the EU Carbon Border Adjustment Mechanism (CBAM) will affect Georgia's economy. The analysis focuses on sectors covered by CBAM, including cement, iron and steel, aluminum, fertilizers, and electricity. It combines economic modeling, trade data, and consultations with government and business stakeholders to estimate the cost of carbon on Georgian exports to the EU. The report aims to help Georgian policymakers and companies prepare for the transition. It highlights that CBAM links market access to emissions performance, meaning Georgian producers will need to track and report embedded emissions or face added costs at the border. The findings are meant to support informed decisions ahead of the mechanism's full implementation. For anyone tracking CBAM's real world effects, this is a concrete case study. It shows how a non-EU country with close trade ties is bracing for carbon pricing at the border. The report is available as a PDF download from the UNDP Georgia page.
