CBAM stands for Carbon Border Adjustment Mechanism, an EU policy that applies a carbon price to imported goods based on their embedded emissions.

The Carbon Border Adjustment Mechanism (CBAM) is a regulatory tool introduced by the European Union to ensure that imported goods are subject to the same carbon costs as products produced within the EU, thereby reducing the risk of carbon leakage and promoting global decarbonisation Die Europäische Kommission+1. CBAM primarily targets carbon-intensive sectors such as steel, aluminium, cement, fertilisers, hydrogen, and electricity