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What is the EU’s Carbon Border Adjustment Mechanism (CBAM)?

The Carbon Border Tax is a levy on CO2-intensive products as they enter the EU, such as steel, cement, fertilizer, aluminum, and electricity. Firms that import these goods will have to buy certificates to cover the cost of the CO2 emitted during the manufacturing process. The new measure is called the Carbon Border Adjustment Mechanism (CBAM). The testing phase will begin in October 2023. The CBAM is intended to level the playing field for EU industries that already have to pay for the pollution they emit. But what is the Carbon Border Adjustment Mechanism?

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