CBAM

CBAM means Carbon Border Adjustment Mechanism

''This new mechanism would place a carbon price on imports of certain goods from outside the EU, in order to push EU partners to raise their climate ambition and reduce the risk of 'carbon leakage'. This term describes a phenomenon where companies transfer production abroad to countries that have less stringent emission rules in place. Carbon leakage would counteract Europe's efforts to become climate-neutral by 2050, relocating emissions to third countries rather than reducing global emissions.''