The carbon border adjustment mechanism and the Gulf: legal contours, diplomatic strategies and prospects for regional dispute resolution

The European Union’s Carbon Border Adjustment Mechanism (CBAM) represents a significant innovation in the intersection of trade and climate regulation, with profound implications for hydrocarbon-exporting economies such as Qatar. This article examines CBAM’s legal consistency under World Trade Organization (WTO) rules, its tension with the principle of common but differentiated responsibilities and respective capabilities (CBDR-RC) enshrined in international environmental law, and its distributive impact on developing, energy-reliant states. The article argues that CBAM’s legal defensibility within the WTO framework remains contested, and effective Gulf engagement with CBAM requires moving beyond compliance to proactive institution-building, regional coordination, and constructive diplomacy. In conclusion, the article proposes that while CBAM poses acute risks for fossil fuel-dependent economies, it may also catalyse the Gulf Cooperation Council’s transition towards more coherent carbon governance and more equitable integration into a carbon-adjusted global trading system.