Australia considers CBAM to address carbon leakage

• The Australian Government has announced a review on whether to introduce a carbon border adjustment mechanism (CBAM) in Australia.
• The CBAM would apply a “carbon tariff” to imports from overseas, in certain circumstances.
• An evaluation of policy options and the feasibility of an Australian CBAM are likely to be finalized by October 2024.
• Businesses should now consider the potential implications of a CBAM on their business operations.

Source EY

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