Alexandre da Rosa Explains CBAM – Carbon Border Adjustment Mechanism

“Climate change is a global problem that needs global solutions!”

The CBAM (Carbon Border Adjustment Mechanism) is a carbon border adjustment mechanism, proposed by the *European Union, which aims to ensure that products imported into the EU are produced with the same level of environmental care required of European companies. With a system of taxation of greenhouse gas emissions associated with production, in order to create an equivalence with the fees that European companies already pay for their emissions.

Carbon CBAM will have a significant impact on sectors that produce high-emission goods, such as “steel, cement and aluminum”, which will have to move towards more sustainable practices, in all countries.

In summary, the objectives are:

* Encouraging companies outside Europe to also pollute less
* Bring competitiveness to European companies
* Avoid carbon leakage to countries with less stringent environmental laws

CBAM is still under discussion and should go through a gradual implementation process, with entry into force expected from 2026.

WMF is the best option to help your exporting company adapt to these new European tax rules.