Harmonizing Urban Planning and Industrial Decarbonization: The Role of Carbon Border Adjustment Mechanism (CBAM) in the Green Deal Framework


Creative Commons License

Can D.

2025 RSA Annual Conference Navigating Regional Transformation, Porto, Portugal, 6 - 09 May 2025, (Unpublished)

  • Publication Type: Conference Paper / Unpublished
  • City: Porto
  • Country: Portugal
  • Middle East Technical University Affiliated: Yes

Abstract

The European Green Deal aims to achieve climate neutrality by 2050 through transformative policies designed to curb carbon emissions and support sustainable economic development. Among its initiatives, the Carbon Border Adjustment Mechanism (CBAM) serves as a critical tool for preventing carbon leakage by imposing tariffs on imports from countries and regions with less strict environmental regulations. Although its primary focus is industrial decarbonization, CBAM has far-reaching implications for urban planning and regional development.

This paper examines the interconnection between the Green Deal, CBAM, and urban planning, emphasizing the strategies required to align industrial activity with climate objectives. The adoption of CBAM is expected to shift industrial practices, potentially reshaping the geographic distribution of production and trade. Urban centers, as key nodes of industry and logistics, must adapt by implementing sustainable land-use policies, optimizing transport systems, and advancing circular economy principles.

Additionally, CBAM presents an opportunity for urban planners to promote green industrial zones and integrate renewable energy initiatives into local development strategies. However, it also raises critical socio-economic concerns, particularly for carbon-intensive regions that may face significant challenges in transitioning to new regulatory environments, potentially exacerbating economic inequality.

This study explores case studies of cities and regions within and beyond the European Union, showcasing how urban planning can address the effects of CBAM. By focusing on governance, stakeholder engagement, and innovative solutions, this research underscores the essential role of urban planning in balancing industrial transformation with environmental sustainability and equitable development.