Carbon Border Adjustment Mechanism

E877507

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.

All labels observed (1)

Label Occurrences
Carbon Border Adjustment Mechanism canonical 2

How this entity was disambiguated

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
European Parliament
aimsTo ensure fair competition
prevent carbon leakage
support EU climate targets
appliesToJurisdiction European Union
basedOn European Green Deal
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
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
legalForm EU regulation
linkedTo EU Emissions Trading System
monitoredBy European Commission
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
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

How these facts were elicited

Referenced by (2)

Full triples — surface form annotated when it differs from this entity's canonical label.

Fit for 55 package includesInstrument Carbon Border Adjustment Mechanism
EU Emissions Trading System reform relatedTo Carbon Border Adjustment Mechanism