What CBAM is (professional definition) The EU Carbon Border Adjustment Mechanism (CBAM) is a carbon-pricing policy that applies to certain imports into the European Union , intended to reflect the carbon cost that EU producers already face under the EU Emissions Trading System (EU ETS) . Put simply, CBAM requires EU importers (and, indirectly, their non‑EU suppliers) to report embedded greenhouse gas emissions in covered goods and, over time, pay a charge via CBAM certificate

1. Background and Historical Context 🌡️ The problem: By the late 20th century, scientists had reached strong consensus that greenhouse gas (GHG) emissions from industrial activity were intensifying the greenhouse effect , causing global warming . 📅 Key milestones: Year Event 1992 United Nations Framework Convention on Climate Change ( UNFCCC ) signed at the Rio Earth Summit — establishing the global framework for addressing climate change. 1997 Kyoto Protocol adopted in K