Carbon Border Adjustment Mechanism: Difference between revisions
imported>Doug Williamson (Add link.) |
imported>Doug Williamson (Update for implementation period.) |
||
| Line 3: | Line 3: | ||
(CBAM). | (CBAM). | ||
The Carbon Border Adjustment Mechanism is | The Carbon Border Adjustment Mechanism is an EU Regulation, phased in over the period 2023 to 2026. | ||
It is designed to address the problem of ''carbon leakage'' out of the EU and into other countries. | It is designed to address the problem of ''carbon leakage'' out of the EU and into other countries. | ||
| Line 10: | Line 10: | ||
The mechanism of the CBAM | The mechanism of the CBAM is a charge on goods imported into the EU, that have excessive levels of embedded carbon. | ||
Embedded carbon is a measure of the GHG emissions released during the production of goods in those other countries. | Embedded carbon is a measure of the GHG emissions released during the production of goods in those other countries. | ||
Importers | Importers need to buy and surrender CBAM certificates for each tonne of CO<sub>2</sub> - or equivalent GHG emissions. | ||
The price of CBAM certificates | The price of CBAM certificates is the same as the price of the equivalent EU Emissions Trading System (EU ETS) allowances. | ||
Revision as of 17:54, 26 March 2022
Environmental policy - European Union - regulation.
(CBAM).
The Carbon Border Adjustment Mechanism is an EU Regulation, phased in over the period 2023 to 2026.
It is designed to address the problem of carbon leakage out of the EU and into other countries.
Carbon leakage is the risk that greenhouse gas (GHG) emissions may increase in other countries, as a consequence of reductions within the EU.
The mechanism of the CBAM is a charge on goods imported into the EU, that have excessive levels of embedded carbon.
Embedded carbon is a measure of the GHG emissions released during the production of goods in those other countries.
Importers need to buy and surrender CBAM certificates for each tonne of CO2 - or equivalent GHG emissions.
The price of CBAM certificates is the same as the price of the equivalent EU Emissions Trading System (EU ETS) allowances.
See also
- Carbon credits
- Carbon footprint
- Carbon leakage
- Carbon-neutral
- Carbon tax
- Carbon Trust
- Corporate social responsibility
- Decarbonise
- Embedded carbon
- Environmental profit and loss
- Footprint
- International Institute for Sustainable Development
- Regulation
- Renewables
- Streamlined Energy and Carbon Reporting
- World Trade Organization (WTO)
