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:
Contact Optel Today
Related Blog Post
The EU’s Carbon Border Adjustment Mechanism (CBAM) Regulation
To counter carbon leakage, the EU officially published the Carbon Border Adjustment Mechanism (CBAM) on May 16, 2023. CBAM is a tariff imposed on imported goods based on their carbon footprints.
Overview of European Environmental Regulations and Frameworks
The European Union is at the forefront of integrating sustainability into policies. Navigating these regulations can be complex, here’s a summary on EU ESG regulations.