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.
