November 7, 2025
Carbon Border Adjustment Mechanism (CBAM)
The Carbon Border Adjustment Mechanism (CBAM) is an EU instrument aimed at preventing carbon leakage, meaning the shifting of emissions outside the EU. Carbon leakage refers to a situation where companies operating within the EU transfer their carbon-intensive production to countries with looser climate policies than the EU, or when products manufactured in the EU are replaced by imported products with a larger carbon footprint.























