The ‘border adjustment mechanism’ aims to create a level playing field while also encouraging decarbonisation
The biggest shake-up of green trade rules for decades comes into force today, as companies selling steel, cement and other high-carbon goods into the EU will have to prove they comply with low-carbon regulations or face fines.
But a lack of clarity on how the rules will be applied, and the failure of the UK government to strike a deal with Brussels over the issue, could lead to confusion in the early stages, experts warned.
Companies should welcome the carbon border adjustment mechanism (CBAM), which aims to create a level playing field between the EU and overseas competitors, said Stéphane Séjourné, the European Commission’s executive vice-president for prosperity and industrial strategy.
“European industrial producers should be encouraged – and not deterred – in their decarbonisation efforts,” he said. “This CBAM reform brings crucial and long-awaited measures to ensure a level playing field between EU and non-EU industrial producers. By strengthening CBAM, we support our industry’s decarbonisation and secure European players’ competitiveness on the world stage.”
