The CBAM Vulnerability Monitor (CBAM-VM) is an Excel-based tool designed to evaluate the vulnerability of countries or regions to the European Union’s Carbon Border Adjustment Mechanism (CBAM). It provides a simplified assessment based on current trade and production patterns, focusing on five key dimensions: GDP dependence on exports, diversification of export landscapes, concentration on EU markets, emission intensity of production, and the presence of carbon pricing schemes.

The CBAM-VM does not simulate direct economic impacts, which are more complex to gauge due to the intricate and interconnected nature of global trade. For a more detailed economic analysis, we offer CLIMTRADE, a partial equilibrium model designed to simulate the effects of trade policies like CBAM. Despite its simplicity, the CBAM-VM remains an effective and user-friendly tool for initial assessments, offering clear visualizations to quickly identify countries that may be particularly at risk from CBAM implementation

Users can explore different aspects of vulnerability through the tool’s dashboard, which highlights countries that are least and most vulnerable, provides detailed performance data for specific countries, and offers visualizations of trade-related emissions. Additionally, the tool estimates potential carbon costs as carbon prices rise, helping to understand the growing impact on exports. While the CBAM-VM remains a simplified tool, it is user-friendly and highly effective for identifying regions that may require support or intervention as CBAM is implemented.

The tool allows for customisation of data inputs, enabling users to adjust factors such as export data, emission intensity, and carbon prices to fit specific regional contexts. This flexibility makes it an adaptable resource for policymakers and stakeholders seeking to quickly evaluate CBAM-related risks and prepare for further, more detailed economic analyses using tools like CLIMTRADE.