Introduction of a Carbon Border Adjustment Mechanism (CBAM) in the EU : overview of the functioning of CBAM / publisher: Umweltbundesamt ; authors, institutions: Sean Healy, Johanna Cludius & Verena Graichen, Öko-Institut

Abstract

The EU will introduce a carbon border adjustment mechanism (⁠CBAM⁠) on October 1, 2023. The main idea is to apply the same carbon price to imported emission-intensive goods as if they had been produced under EU carbon pricing rules (EU ETS). This is intended to prevent the relocation of domestic industry, which has to bear rising ⁠CO2⁠ costs within the EU ETS, to countries without comparable carbon pricing. This would not protect the climate. The factsheet explains the objectives and functioning of the new climate protection instrument.