Box A: The European Union’s Carbon Border Adjustment Mechanism: levelling the EU carbon playing field

On July 14, the European Commission presented 13 policy measures designed to put the EU on track to meet its ambitious greenhouse gas (GHG) emission reduction targets of 55 per cent in 2030 compared with 1990 levels. The most contentious proposal from an international standpoint is the Carbon Border Adjustment Mechanism (CBAM), which aims to create a level playing field between European Union (EU) producers subject to EU carbon pricing and their non-EU counterparts.