Carbon Border Adjustment Mechanism
E877507
European Union climate policy instrument
European Union regulation
border carbon adjustment
carbon pricing mechanism
The Carbon Border Adjustment Mechanism is an EU policy tool that imposes a carbon price on certain imported goods to prevent carbon leakage and ensure fair competition with EU producers subject to stricter climate regulations.
Statements (49)
| Predicate | Object |
|---|---|
| instanceOf |
European Union climate policy instrument
ⓘ
European Union regulation ⓘ border carbon adjustment ⓘ carbon pricing mechanism ⓘ |
| addresses | risk of unfair competition from carbon-intensive imports ⓘ |
| adoptedBy |
Council of the European Union
NERFINISHED
ⓘ
European Parliament NERFINISHED ⓘ |
| aimsTo |
ensure fair competition
ⓘ
prevent carbon leakage ⓘ support EU climate targets ⓘ |
| appliesToJurisdiction | European Union NERFINISHED ⓘ |
| basedOn | European Green Deal NERFINISHED ⓘ |
| compatibleWith | World Trade Organization rules (intended) ⓘ |
| complements | phase-out of free allowances in the EU ETS ⓘ |
| concerns | greenhouse gas emissions embedded in products ⓘ |
| coversSector |
aluminium
ⓘ
cement ⓘ electricity ⓘ fertilisers ⓘ hydrogen ⓘ iron and steel ⓘ |
| designedTo |
align trade flows with EU climate ambition
ⓘ
mirror carbon costs faced by EU producers ⓘ |
| encourages | foreign producers to reduce carbon intensity ⓘ |
| geographicalScope | imports into the EU single market ⓘ |
| hasAbbreviation | CBAM NERFINISHED ⓘ |
| hasComponent |
definitive phase with financial adjustment
ⓘ
transitional phase with reporting only ⓘ |
| imposes | carbon price on certain imports ⓘ |
| instrumentType | market-based climate policy ⓘ |
| introducedBy | European Commission NERFINISHED ⓘ |
| legalForm | EU regulation ⓘ |
| linkedTo | EU Emissions Trading System NERFINISHED ⓘ |
| monitoredBy | European Commission NERFINISHED ⓘ |
| objective |
avoid carbon leakage
ⓘ
encourage decarbonisation in third countries ⓘ reduce risk of production relocation to countries with laxer climate policies ⓘ |
| policyArea |
climate change mitigation
ⓘ
environmental policy ⓘ trade policy ⓘ |
| priceReference | EU ETS carbon price ⓘ |
| regulates | EU importers of covered products ⓘ |
| relatedConcept |
carbon border tax
ⓘ
embedded carbon emissions ⓘ |
| relatedTo | Fit for 55 package NERFINISHED ⓘ |
| requires |
importers to purchase CBAM certificates
ⓘ
reporting of embedded emissions in imported goods ⓘ |
| targets | imported goods with high carbon intensity ⓘ |
| uses | embedded emissions as basis for pricing ⓘ |
Referenced by (1)
Full triples — surface form annotated when it differs from this entity's canonical label.