As part of its efforts to tackle climate change, the European Commission has proposed the introduction of a new carbon border adjustment mechanism (CBAM) which aims to address the issue of “carbon leakage” – this involves EU companies moving carbon-intensive production to other countries to take advantage of lower standards or EU companies importing cheaper, more carbon-intensive products.
In this briefing, Clifford Chance explores the likely impact of CBAM, the challenges ahead, and whether it will provide an example for other countries to follow, or will fail.
The complete brief can be downloaded here
