Negotiators of the EU Council and Parliament reached a provisional agreement on the Carbon Border Adjustment Mechanism (CBAM) this week.
CBAM is part of the EU Green Deal / Fit for 55 package, which is the EU’s plan to reduce greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels. This involves a significant tightening of emissions caps under their emissions trading scheme and a reduction, eventually to zero, in free allocation of permits to heavy emitters.
Source KPMG
