TheEU Carbon Border Adjustment Mechanism (CBAM)is acarbon pricing tool that ensures imports of
carbon-intensive goods face similar emissions costs as EU-produced goods.
This prevents carbon leakage, where companies move production to countries with weaker climate
regulations.
It is not a revision of energy taxation (A).
While CBAM supports sustainability goals (C), its main purpose is to adjust carbon pricing on imports.
Reference:
European Commission Carbon Border Adjustment Mechanism (CBAM) Overview
CFA Institute ESG & Carbon Pricing Analysis
UNFCCC Climate Policy & Trade Regulations
