Carbon Border Adjustment Mechanism
Compare national policies on Carbon Border Adjustment Mechanism across jurisdictions, through progress, institutions, and expectation structures.
What it is
A border measure that places a carbon cost — equivalent to the internal carbon price — on the embedded emissions of imports, aiming to prevent carbon leakage (production shifting abroad) from domestic emissions rules.
Implications for companies
Firms exporting covered goods to the EU must calculate and report embedded emissions. The definitive regime from 2026 involves buying certificates. Building primary data across the supply chain is the key challenge.
Differences by country
Only the EU runs a full mechanism so far. The UK is reported to be preparing a similar measure, and other countries are watching the effect on their industries.
What to watch
A reporting-only transitional period began in October 2023; the definitive regime with certificate purchases is planned for 2026. Initial scope: iron & steel, aluminium, cement, fertilisers, hydrogen and electricity.
Related policies
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