In May 2023, EU institutions signed the Carbon Border Adjustment Mechanism (CBAM), which will enter into application in its transitional phase in October 2023.
The CBAM tariff system places a levy on certain carbon-intensive goods (like steel and cement), equalising the price of carbon paid for EU products and the one for imported goods. Ultimately, therefore, the CBAM aspires to build a ‘green’ level playing field.