The world is in the midst of a serious climate crisis. This calls for transnational cooperation for joint climate protection. One goal of the parties to the Paris Agreement on climate protection is the implementation of a CO2 border tax, the CBAM (= Carbon Border Adjustment Mechanism).
The CBAM aims to stop so-called carbon leakage, i.e. production sites in countries with low environmental regulations regarding CO2 emissions no longer have a location advantage. The aim is to level the playing field worldwide and encourage manufacturers to invest in clean and environmentally friendly processes and components.
The CO2 certificate trade, which is controlled by politics, has been in place since 2005. By limiting the number of certificates and the credits in circulation, it determines how much CO2 emissions should be reduced. Supply and demand create a market for CO2. CO2 receives a real equivalent value.
From 2026, a "climate tariff" (CBAM) is to be paid for carbon-intensive manufactured products from abroad. This will take place in the form of certificates - the price for which corresponds to the existing certificates in EU emissions trading for energy production and industry.
The CO2 border tax is used as a thumbscrew to encourage companies to do more to protect the climate throughout the production cycle. climate protection throughout the entire production cycle. It is worth mentioning that companies producing their regulated products within the EU will receive free CBAM certificates.
In the period from 2023 to 2026, a transitional period is planned, in which no levies will yet be incurred on the import of goods, but a report will be required that describes information on the production (especially direct and indirect emissions during production) as well as the CO2 price due for the article.
Imported goods such as cement, electricity, fertiliser, iron, steel as well as aluminium are to be the first goods to fall under the CO2 border tax.
France is pushing for the CBAM as early as mid-2022.