In the realm of environmental sustainability, the Carbon Border Adjustment Mechanism (CBAM) emerges as a key policy tool designed to tackle carbon leakage and promote fair competition in the global marketplace.

Why do we need CBAM?
‍The need for CBAM arises from the recognition of carbon leakage as a significant challenge in the transition to a low-carbon economy. As countries implement ambitious climate targets and carbon pricing mechanisms, there is a risk that industries may relocate to jurisdictions with less stringent regulations, undermining global efforts to combat climate change.

CBAM addresses this risk by internalizing the carbon cost of imported goods, leveling the playing field for domestic producers while incentivizing global adoption of cleaner technologies and practices.