The Carbon Border Adjustment Mechanism (CBAM) was formally enforced by the European Union (EU) on May 16, 2023, with the primary aim of maintaining economic equilibrium and preventing “carbon leakage.” Initially, it will focus on sectors that produce items highly susceptible to carbon leakage, such as iron, steel, cement, electricity, hydrogen, and fertilizers. Over time, the CBAM will progressively broaden its reach, imposing a carbon fee on companies importing goods into the EU if those goods are manufactured with emissions surpassing EU standards. This measure aims to create a level playing field for EU producers and safeguard the European market against products made with less stringent environmental standards. Watch our video for more details:


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