In this article, we take stock of the Carbon Border Adjustment Mechanism (CBAM), and similar initiatives in the United States, Canada, the United Kingdom, South Korea, and China, and what they mean for the energy sector.
- Importers will pay more to bring carbon-intensive goods into the European Union
- The EU CBAM is expected in 2023 and other countries are introducing their own measures
- The EU’s measures will likely set the standard, but conflicting regimes will remain
- Calculating carbon contents of imports and payments exporting and importing companies to do a lot of extra work
- Covered goods do not include energy goods yet