Since the beginning of 2026, the Carbon Border Adjustment Mechanism (CBAM) has entered its definitive phase and serves as the European Union’s (EU) central instrument for preventing the relocation of climate-damaging production to countries with less stringent climate regulations — a phenomenon known as carbon leakage. At the same time, CBAM is intended to strengthen the competitiveness of European industrial companies by offsetting higher CO₂ prices within the EU through mandatory CBAM certificates on industrial imports from outside Europe.
