EU’s carbon border adjustment mechanism, or CBAM, could be implemented as early as 2023 when European companies have to start reporting emissions of imported goods, although they will not need to purchase CBAM certificates until 2026-2027. The Council of the European Union and the European Parliament is yet to decide on the timeline. This gives Asian governments some breathing room to put in emissions accounting frameworks, but decarbonizing supply chains could still take years to accomplish, analysts said. The EU’s governmental agencies all feel CBAM is necessary to protect EU businesses against cheaper product imports from lower carbon pricing regimes and replace [EU’s] free allocations of emissions allowances.
Why European Steelmakers are worried about EU’s Cross Border Carbon Tax
Tags: Carbon Tax, European Union