The Carbon Border Adjustment Mechanism from developing countries’ perspective: a systematic literature review on challenges and opportunities for the Mediterranean basin

The European Carbon Border Adjustment Mechanism (CBAM) aims to prevent carbon leakage by aligning the carbon costs of imported goods with those imposed under the EU Emissions Trading System (ETS), thereby ensuring equitable carbon pricing between imported and domestic products. Through this mechanism, the EU also seeks to incentivize third countries to adopt more ambitious climate policies. This article critically analyzes the challenges that CBAM poses to Mediterranean countries through the lens of the Common But Differentiated Responsibilities (CBDR) principle, emphasizing the need for fairer differentiation criteria and stronger international support. Applying the PRISMA 2020 methodology, this systematic literature review selected 138 studies from an initial pool of 707 to address four specific research questions. The results reveal a limited body of literature on CBDR and differentiation criteria relevant to the fair implementation of CBAM and international carbon pricing regimes. By contrast, 68 of the included studies focus on factors influencing CO₂ emissions in countries within and around the Mediterranean region (MENA, North Africa). This gap underscores the need for more development-sensitive differentiation frameworks. The article concludes with policy recommendations to support the energy transition in the Mediterranean basin, stressing that international cooperation and the deployment of wind and solar energy must be accompanied by the transfer of infrastructure, knowledge, and skills. • Developing economies are vulnerable to carbon border adjustment mechanisms. • An equitable energy transition is needed for developing countries. • Future research should study the application of the CBDR principle on carbon taxes. • Mediterranean nations can leverage their strengths to reduce CBAM's impact.