One Step Closer To Carbon Border Adjustment Mechanism

With regard to the European Union ("EU") practices on Climate Change which we have mentioned in our previous articles, last Wednesday, July 22, European Parliament adopted three key draft laws with the intention of making the Green Deal and the carbon net-zero target by 2050 more effective: (i) The new Emissions Trading System ("EU ETS") (ii) the Carbon Border Tax ("Carbon Border Adjustment Mechanism-CBAM") and (iii) the Social Climate Fund. This legislation has been announced by the European Commission last July as a part of a legislative package that would reduce carbon emissions by 55% until 2030 ("Fit For 55"). The Parliament will start negotiations with the EU governments on the final form and implementation of these draft laws.