Carbon Border Adjustment Mechanism

Agile Advisors as a Carbon Border Adjustment Mechanism, Importers of goods into the European Union (EU) must begin disclosing the emissions hidden in their products when the Carbon Border Adjustment Mechanism (CBAM) is implemented in October 2023. They will have to begin paying for them starting in 2026. Aiming to prevent EU manufacturers, who have been paying the price for their emissions under the EU's trading system, from being at a competitive disadvantage against imports from nations where carbon is not priced, the CBAM is the first mechanism to be adopted anywhere in the world. It will have far-reaching effects. The CBAM will rearrange international trade flows over the next five years or longer, depending on the industry. In the longer term, it will make other economies more inclined to reduce their emissions. Cramer opposes the connection between a border adjustment and a clearly defined domestic carbon price.