Carbon Border Adjustment Mechanism (CBAM) starts to apply in its transitional phase

This Sunday, 1 October, the Carbon Border Adjustment Mechanism (CBAM) will enter into application in its transitional phase. CBAM is the EU’s landmark tool to fight carbon leakage and one of the central pillars of the EU’s ambitious Fit for 55 Agenda. It will equalise the price of carbon between domestic products and imports. This will ensure that the EU’s climate policies are not undermined by production relocating to countries with less ambitious green standards or by the replacement of EU products by more carbon-intensive imports. CBAM is a WTO-compatible measure that encourages global industry to embrace greener and more sustainable