A Carbon Border Tax is a duty on imports based on the amount of carbon emissions resulting from the production of the product in question. The Carbon Border Tax will be imposed on certain types of carbon-intensive products that are imported into the E.U. The EU’s Carbon Border Adjustment Mechanism (CBAM) is a tool to put a fair price on the carbon emitted during the production of carbon intensive goods that are entering the EU, and to encourage cleaner industrial production in non-EU countries.
Related Definitions in the Project: The Commercial Definitions
