When the Carbon Border Adjustment Mechanism (CBAM) is introduced in October 2023, importers of goods into the European Union (EU) will have to start reporting on the emissions embedded in their products. From 2026, they will have to start paying for them.
The CBAM, the first mechanism of its kind to be introduced anywhere in the world, aims to prevent EU producers, who have been paying a price for their emissions in the EU’s trading system, from being put at a competitive disadvantage to imports from countries where carbon is not priced.
- EU producers will be affected too
- A shift in global steel trade patterns
- Sizeable opportunities in the low-carbon hydrogen trade
- Oil producers and refiners have strategic choices to make
- How will global oil flows shift after CBAM?
Strategic responses and global implications
- Global implications
- Outside the EU
- Inside the EU
Source: www.woodmac.com
