– The European Union has established a mechanism called Carbon Border Adjustment Mechanism (CBAM) to achieve climate neutrality for the entire economy by 2050.
– CBAM is a response to the risk of carbon leakage caused by the introduction of harmonized prices for greenhouse gas emissions in the European Union.
– CBAM will be implemented from October 1, 2023.
– The purpose of CBAM is to ensure a level playing field for European industries and prevent carbon leakage.
– CBAM will require importers of certain goods to purchase carbon certificates, which will be based on the carbon content of the imported goods.
– The revenue generated from the sale of carbon certificates will be used to support the European Union’s climate objectives.
– CBAM will initially apply to cement, electricity, and fertilizer sectors, and will gradually expand to other sectors.
– CBAM will be implemented in a phased approach, with a transitional period until 2026 for certain sectors.
– CBAM aims to incentivize non-EU countries to take ambitious climate action and reduce their greenhouse gas emissions.
Source: financien.belgium.be
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
