Introduction
The Carbon Border Adjustment Mechanism (CBAM) is a European
Union regulation which has been introduced to reduce carbon
emissions produced by manufactured goods imported from
jurisdictions with less stringent carbon emissions regulations.
The regulation will affect Cooley clients importing fertilisers,
energy products, hydrogen, cement, iron and steel, as well as
carbon dioxide equivalent (CO2e) emissions connected to
them. CO2e refers to 'the number of metric tons of
CO2 emissions with the same global warming potential as
one metric ton of another greenhouse gas', as defined in the
upcoming legislation.
This blog post will cover the scope of the CBAM, its key
provisions, timeline and next steps.
