What is CBAM?CBAM stands for Carbon Border Adjustment Mechanism, also known as "carbon tariff" or "carbon border adjustment mechanism", which refers to the requirement to pay or refund corresponding taxes or carbon allowances for imported or exported high-carbon products on the basis of the implementation of strict domestic climate policies.
The discussion about CBAM has been around for a long time and has been mentioned many times in different countries. The EU has actively promoted relevant legislation, which has attracted widespread attention. The EU's Carbon Border Adjustment Mechanism (CBAM) is a milestone tool to fairly price carbon emitted during the production of carbon-intensive products entering the EU and to encourage cleaner industrial production (low-carbon production) in non-EU countries. The gradual introduction of CBAM is in line with the phase-out of free allowance allocations under the EU Emissions Trading System (ETS) to support the decarbonisation of EU industry.
After the implementation of the CBAM, the EU will impose taxes and fees on the carbon emissions of some imported goods. In other words, the difference between the same amount of carbon emissions inside and outside the EU is adjusted through CBAM, so that the ** payment for the same amount of carbon emissions inside and outside the EU is basically the same.
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