EU member states have agreed to extend measures to price the carbon emissions of goods imported into the Eurozone to include a wide range of end-products made from steel, aluminum and iron. The current Carbon Border Adjustment Mechanism (CBAM) came into force on Jan. 1 this year and currently applies mainly to high-emission raw materials.
The European Council published its draft new framework to expand the CBAM on June 12. The revised mechanism is intended to reduce “carbon leakage” via companies pushing carbon emissions down their supply chains to other regions, instead of costing in these emissions within the EU’s Emissions Trading System (ETS).
