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CARBON BORDER ADJUSTMENT MECHANISM
The European Union’s carbon border adjustment mechanism (CBAM) applies a carbon price to carbon-intensive goods imported into the EU. It aims to align the carbon price of imports with the EU Emissions Trading System (ETS), thereby ensuring fair competition between non-EU producers and EU producers already subject to the EU ETS. Under CBAM, importers are required to purchase CBAM certificates corresponding to the declared embedded emissions of their EU-bound goods.
CBAM is not voluntary, and for upstream supply chain (UPSC) producers and exporters, compliance with this regulation is essential to protecting business continuity and growth by meeting carbon data reporting requirements.
CBAM is not voluntary, and for upstream supply chain (UPSC) producers and exporters, compliance with this regulation is essential to protecting business continuity and growth by meeting carbon data reporting requirements.
Jun. 17 2026