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.
[References:, European Commission Carbon Border Adjustment Mechanism (CBAM) Overview, CFA Institute ESG & Carbon Pricing Analysis, UNFCCC Climate Policy & Trade Regulations, , , , ]
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