Earlier in February 2021, the ENVI Committee adopted the report ‘Towards a WTO-compatible EU carbon border adjustment mechanism’. This report is an initiative of the ENVI Committee and addresses the creation of a carbon border adjustment mechanism (CBAM), proposed by the European Commission in its communication on the European Green Deal.
To deliver on the European Green Deal carbon neutrality ambitions, the European Union is setting grounds for a Carbon Border Adjustment Mechanism (CBAM).
The aim of the CBAM is to encourage third-world countries to reduce their carbon emissions by placing a carbon price on the imports of certain goods from outside the European Union.
The CBAM will help to increase climate ambitions beyond EU countries and reduce the risk of ‘carbon leakage’.
Read more about it here.