Johannes Gallé is a post-doctoral researcher at the Mercator Research Institute on Global Commons and Climate Change in Berlin. His research focus lies at the intersection of development, regional, and environmental economics, where he is primarily interested in the econometric evaluation of environmental policies. Besides his work on the distributional impacts of the EU-CBAM, Johannes Gallé has gained extensive research experience in India and South Africa. Johannes Gallé holds a PhD in Economics from the Ruhr University Bochum.
The European Union (EU) is currently implementing a Carbon Border Adjustment Mechanism (CBAM) as a complementary trade policy to the domestic EU Emission Trading Scheme (EU-ETS). From 2026 on, producers of iron and steel, aluminum, cement, fertilizers, and electricity will have to surrender emissions certificates proportional to the CO2 emissions caused when exporting to the EU. Although the EU CBAM has been introduced as an anti-leakage instrument, it will affect the competitiveness of its trade partners, including Turkey.
The research project aims to quantify the distributional impacts of the EU CBAM on Turkish households through price and income changes. Additionally, it evaluates different policy response options for Turkey. If Turkey were to implement a carbon price (on its full production or its exports), its fiscal revenue could be used to mitigate the impacts of the carbon price, since the EU CBAM would not apply to products already covered by an equivalent carbon price.