New CBAM policy will help Europe become carbon neutral

The process of pouring molten steel has begun in mills across Europe, but this process is now accompanied by a significant step in the fight against climate change. The new policy, known as the Carbon Boundary Adjustment Mechanism (CBAM), imposes a charge on greenhouse gas emissions from imports into the European Union of materials such as steel, cement, aluminium, electricity, fertilisers, hydrogen and iron.

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This became possible from October 2023, which is defined as the first phase of the CBAM, where companies must report greenhouse gas emissions associated with production, and from 2026 they will pay a tariff.

Experts believe that the CBAM could prove to be a key incentive for companies around the world that import these materials into the EU to reduce their greenhouse gas emissions or pay the fee. It could also provide valuable data for climate researchers and policymakers, helping them to better understand the impact of industry on climate change and develop more effective strategies.

Source: Ars Technica