The initial phase will cover those carbon-intensive industries most at risk of carbon leakage: cement, iron and steel, aluminium, fertilizers, electricity and hydrogen.
CBAM explained in 60 seconds, courtesy of the EU Tax and Customs Union
27/09/2023. The Carbon Border Adjustment Mechanism (CBAM) pilot phase kicks off just days away, on the 1 October 2023. It introduces a levy on imports coming from countries with more relaxed carbon emission rules and discourages companies from moving production out of the EU; a situation known as ´carbon leakage´.
The CBAM will initially apply to imports of certain goods and selected precursors whose production is carbon intensive and at most significant risk of carbon leakage: cement, iron and steel, aluminium, fertilizers, electricity and hydrogen.
To find out more about CBAM, visit the EC´s Taxation and Customs Union website.
A EU Green Deal for carbon neutrality in 2050
This is one of a series of policies under the EU Green Deal with the aim of achieving a 63% cut in emissions by 2030, and carbon neutrality in 2050. The CBAM will be fully in place as of 2026.
The phasing-out of free allocation under the EU ETS will take place in parallel with the phasing-in of CBAM in the period 2026–2034.
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