What is the CBAM (Carbon Border Adjustment Mechanism)?

The Carbon Border Adjustment Mechanism (CBAM) is a regulation introduced by the European Union to impose a carbon price on imported goods based on their embedded emissions. It aims to prevent "carbon leakage," where companies relocate production to countries with less stringent emissions regulations to avoid EU climate policies. Companies importing carbon-intensive products into the EU must calculate and report their embedded emissions and purchase CBAM certificates to offset these emissions. This mechanism ensures a level playing field for EU businesses that already comply with strict environmental standards. Sustamize provides companies with accurate carbon data and tools to comply with CBAM reporting requirements efficiently.

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