The European Union’s Carbon Border Adjustment Mechanism (CBAM) starts entering into effect on October 1, 2023.This new tool seeks to ensure an equivalent carbon price between goods produced in the EU, and imported products, thereby countering the possibility of carbon leakage, a phenomenon where businesses were to transfer production to other countries with laxer emission constraints, but which ultimately leads to higher emissions.
Some questions arise such as why the need for a new carbon tax in Europe, on top of the current EU ETS? We will also explore how does CBAM work and what emissions are considered. We will also find out about its target sectors and explore what impact CBAM has on the green hydrogen industry.
Here’s our take at Yamna!
