The Carbon Border Adjustment Mechanism (CBAM) is one of the key pieces of legislation adopted by the European Council as part of the “Fit for 55” package. It aims to protect EU industries from the risk of carbon leakage by requiring importers of certain goods into the EU to purchase carbon credits to offset the carbon emissions associated with the production of those goods. The goal is to ensure that imported products face the same carbon costs as products produced in the EU, thereby reducing the incentive for companies to relocate production outside of the EU. The EU has stated that it will work with its trading partners to ensure that the CBAM is compatible with international trade rules and does not unfairly disadvantage other countries. Click here to read the press release
The European Council has adopted several pieces of legislation aimed at delivering on the EU’s 2030 climate targets as part of the “Fit for 55” package. These measures include a revised emissions trading system, a carbon border adjustment mechanism, new targets for renewable energy and energy efficiency, and new regulations for the transport sector. The legislation is expected to contribute to the EU’s goal of reducing greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels. The Council’s adoption of these measures is a significant step towards the EU’s ambitious climate goals, and signals the bloc’s commitment to leading the global fight against climate change. The Carbon Border Adjustment Mechanism (CBAM) is one of the key pieces of legislation adopted by the European Council as part of the “Fit for 55” package. It aims to protect EU industries from the risk of carbon leakage by requiring importers of certain goods into the EU to purchase carbon credits to offset the carbon emissions associated with the production of those goods. The goal is to ensure that imported products face the same carbon costs as products produced in the EU, thereby reducing the incentive for companies to relocate production outside of the EU. The EU has stated that it will work with its trading partners to ensure that the CBAM is compatible with international trade rules and does not unfairly disadvantage other countries.
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