The main objective of Carbon Border Adjustment Mechanism (CBAM) regulation is to avoid carbon leakage. It will also encourage partner countries to establish carbon pricing policies to fight climate change.
For that purpose, CBAM targets imports of carbon-intensive products (cement, aluminium, fertilisers, electric energy production, iron and steel) to prevent offsetting the EU’s greenhouse gas emissions reduction efforts through imports of products manufactured in non-EU countries. It will also help prevent the relocation of the production or the import of carbon-intensive products.