EU CBAM

The EU Carbon Border Adjustment Mechanism (CBAM)

The EU Carbon Border Adjustment Mechanism (CBAM) is an environmental policy designed to tackle carbon leakage. Carbon leakage refers to the situation where EU producers relocate their production facilities to regions outside the EU that lack carbon pricing mechanisms or have less stringent climate policies in place. It can also occur when customers choose to substitute EU products with cheaper imports that have higher embedded emissions.

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