In December 2025, the European Commission presented a proposal for a Regulation (“Proposal”) to extend the scope of downstream goods subject to the EU’s Carbon Border Adjustment Mechanism (“CBAM”), and provide flexibility to the Commission to exempt specific products in order address adverse market impacts and
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Twelve Things to Know About the Upcoming EU Carbon Border Adjustment Mechanism
The European Commission is currently discussing a draft of a proposal for a Carbon Border Adjustment Mechanism (“CBAM”) Regulation that it is expected to present on July 14, 2021. A CBAM was already announced in the European Commission’s Communication for a Green Deal and is intended to protect the EU’s domestic industry that is at risk of carbon leakage—to create a level playing field—and to serve as a policy tool to encourage third countries to reduce their greenhouse gas (“GHG”) emissions.
Continue Reading Twelve Things to Know About the Upcoming EU Carbon Border Adjustment Mechanism