Carbon Border Adjustment Mechanism (CBAM)
White Paper
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The EU’s Carbon Border Adjustment Mechanism (CBAM) is landmark tool to put a fair price on the carbon emitted during the production of carbon intensive goods that are entering the EU, and to encourage cleaner industrial production in non-EU countries. This is introduced mainly to deal with Carbon Leakages – a possible situation when companies based in the EU move carbon-intensive production abroad to countries where less stringent climate policies are in place than in the EU, or when EU products get replaced by more carbon-intensive imports.