Introduction: What is CBAM? The Carbon Border Adjustment Mechanism (CBAM) is the European Union’s landmark initiative to address carbon leakage and promote global decarbonization. In simple terms, CBAM is a carbon pricing system applied to certain imported goods into the EU to ensure they meet the same environmental standards as those produced within the EU. From October 2023, the EU started the transitional phase of CBAM, with full implementation expected by 2026. If your business exports