Carbon Border Adjustment Mechanism

The Carbon Border Adjustment Mechanism (CBAM) is a carbon tariff on carbon intensive products, such as steel,^[1] cement and some electricity,^[2] imported to the European Union.^[3] Legislated^[4] as part of the European Green Deal, it takes effect in 2026, with reporting starting in 2023.^[5][6] CBAM was passed by the European Parliament with 450 votes for, 115 against, and 55 abstentions^[7][8] and the Council of the EU with 24 countries in favour.^[9] It entered into force on 17 May 2023.^[10]