Carbon Border Adjustment Mechanisms

Regulatory

This analyst note forms one in a series of reporting on government initiatives around the energy transition. These are not drafted to include any form of political opinion, or bias, and as such represent a clear reporting of the facts known at the time of publication. Any suggestion of political leanings in unintentional.

The European Union was the first governing body in the world to introduce the concept of a border adjustment mechanism based on the carbon delta between localized production and imported production of goods.

With the mechanism due to be rolled out within the next three to four years an increasing number of industries and companies will need to understand the shifting impact of trade exposure from such mechanisms and the impact on their own business. 

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