The European Parliament (Parliament) enacted significant change to the proposed European Union (EU) Regulation for a Carbon Border Adjustment Mechanism (CBAM) in June 2022, as reported in an earlier GT Alert.
CBAM would require companies importing cement, electricity, fertilizers, iron, steel, aluminum, and other materials into the EU to pay a carbon adjustment at the border corresponding to the carbon price that would have been paid had the goods been produced under the EU’s carbon pricing rules.