- The European Union is making changes to the European Emission Trading System (ETS) and introducing the Carbon Border Adjustment Mechanism (CBAM).
- The ETS aims to reduce emissions in the EU from business and production activities.
- From January 1, 2024, there will be fewer free emission allowances and the shipping, aviation, and road transport sectors will be included in the ETS.
- CBAM is a new import levy on CO2-intensive products such as steel, iron, aluminum, and cement.
- CBAM is not a replacement for the current emission trading system but aims to create a level playing field for companies producing CO2-intensive products within and outside the EU.
- The podcast discusses the impact of these changes on companies within and outside the EU.
Source: stibbe.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
