Carbon Border Adjustment Mechanism for EU exports
Many countries around the world are actively trying to find solutions to Climate Change. Some countries, such as the United States of America, have chosen to incentivise green industries in the hope that they will naturally replace more polluting industries. Other countries are targeting polluting industries, ensuring they pay a fair price for the emissions they output. The European Union (EU) have recently launched the Carbon Border Adjustment Mechanism (CBAM), which hopes to spearhead the EU to the forefront of worldwide green policy. CBAM will replace the EU Emissions Trading System and hopes to capture “Carbon-leakage”, meaning that importers in the EU pay a fair price for imports. Exporters will now need to report the emissions produced when manufacturing their goods, which EU importers will then link to import declarations as part of a quarterly report. The following six sectors affected are:
Joe Goldsworthy
14 February, 2024
Business West
