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Clifford Chance

Clifford Chance


The EU's Carbon Border Adjustment Mechanism - Trendsetter, or doomed to fail?

14 December 2021

As part of its efforts to tackle climate change, the European Commission has proposed the introduction of a new carbon border adjustment mechanism (CBAM) which aims to address the issue of "carbon leakage" – this involves EU companies moving carbon-intensive production to other countries to take advantage of lower standards or EU companies importing cheaper, more carbon-intensive products.

In this briefing we explore the likely impact of CBAM, the challenges ahead, and whether it will provide an example for other countries to follow, or will fail.

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