Carbon Border Adjustment Mechanism in 60 seconds

As the EU raises its own climate ambition, but less stringent environmental and climate policies prevail in non-EU countries, there is a strong risk of so-called ‘carbon leakage’, which can shift
emissions outside of Europe and seriously undermine EU and global climate efforts.

That’s why the EU needs the new Carbon Border Adjustment mechanism for imports of goods from outside the EU: a system that puts a fair price on the carbon emitted during production, and that encourages cleaner industry in non-EU countries.