Introduction of a CO₂-border adjustment mechanism in the EU

The EU Commission has proposed a Carbon Border Adjustment Mechanism (CBAM) for certain sectors to address the risk of carbon leakage if "different levels of ambition persist globally" while the EU accelerates its reduction targets. Under the CBAM proposal published by the Commission on July 14, 2021 (as part of the "Fit for 55 package"), the same carbon price will be paid for greenhouse gas emissions associated with certain imported goods as under the EU Emissions Trading Scheme (EU ETS). The EU ETS factsheet provides an overview of the proposed design and operation of the CBAM.