Aligning the EU Carbon Border Adjustment Mechanism With the Sustainable Development Goals: A Transboundary Policy Coherence Framework

ABSTRACT Transboundary effects remain a key challenge to policy coherence for sustainable development. We introduce a Transboundary Policy Coherence Framework (TPCF) to align the EU Carbon Border Adjustment Mechanism (CBAM) with the Sustainable Development Goals (SDGs). The TPCF comprises six steps: (i) defining dimensions, (ii) mapping synergies and trade‐offs, (iii) assessing interdependencies and individual alignment, (iv) establishing analytical categories, (v) conducting sectoral assessments, and (vi) identifying indicators. We identify 69 SDG targets across three CBAM dimensions: carbon regulation (56), industry (44), and energy system (31). We find 80 cross‐dimensional interdependencies, 25 single‐dimensional interactions, and 22 analytical categories that support policy coherence. Sectoral results show that CBAM‐SDG alignment varies across sectors and requires consideration of carbon regulation alongside industry and energy system dimensions. We propose 30 indicators to guide CBAM implementation beyond regulation by integrating industry and energy system into policy decisions and strengthening alignment with the SDGs.