The Carbon Border Adjustment Mechanism (CBAM) is a new emissions trading system for imports introduced by the European Union (EU) as part of its “Fit for 55” package to achieve its climate goals. The CBAM aims to address carbon leakage by imposing a carbon price on certain goods imported into the EU from third countries. It covers industries such as steel, aluminum, cement, fertilizers, hydrogen, and electricity. Companies importing these goods will be required to obtain CBAM certificates corresponding to the emissions associated with the imported products. The CBAM imposes administrative and financial burdens on affected companies, and non-compliance may result in sanctions. The implementation details are still being finalized, and companies are advised to prepare for the forthcoming requirements.
Source: awb-international.de
