Glossary
What is the Carbon Border Adjustment Mechanism (CBAM)?
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Summary
The Carbon Border Adjustment Mechanism (CBAM) is a system that places a carbon price on imports of products from countries with less ambitious national policies around climate change. The system is designed to prevent the risk of carbon leakage and was proposed by the European Commission in 2021.
It is currently being legislated as part of the European Green Deal and is expected to take effect in 2026, with reporting starting in 2023.
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