INDEX 26 Intelligence

INDEX 26 Intelligence

Why Europe Is Taxing the World’s Carbon

Macro photograph of a steel shipping container representing the Carbon Border Adjustment Mechanism (CBAM) and global trade.

The Carbon Border Adjustment Mechanism is a strict European Union regulatory framework that calculates and mathematically prices the greenhouse gases emitted during the manufacturing of imported industrial goods, eliminating the financial advantage of producing cheap, high-carbon materials in foreign jurisdictions.