To help you as Carbon Border Adjustment Mechanism, The EU developed the first carbon border tax in history, the Carbon Border Adjustment Mechanism (CBAM), to lower carbon emissions. Its main objective is to solve the problem of "carbon leakage," often known as emissions from outsourcing. This occurs when businesses move their manufacturing to nations with less stringent emissions regulations, frequently resulting in a rise in overall emissions. On October 1, 2023, the policy's first phase, which would be implemented gradually over three years, went into effect. The high-emitting industries that are the focus of this initial trial phase include cement, fertilizers, iron and steel, aluminum, hydrogen, and power. From a component of CBAM, it will progressively expand to cover more industries before going into effect on January 1, 2026. The price of carbon will be applied then.

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