What the EU’s new border adjustment regime is about – an overview
- The “Carbon Border Adjustment Mechanism” aims to price greenhouse gases from imports in the same way as products manufactured in the EU area.
- In perspective, the costs of emitting emissions will increase significantly by 2034, because the free allocation of emission certificates currently being practiced will expire.
- Conversely, the CBAM is intended to ensure that local manufacturers have the same competitive opportunities as their third-country competitors with regard to greenhouse gas costs.
Source EY
