The term "Carbon Leakage" describes a shift of carbon-intensive production by EU-based companies to third countries with less stringent climate protection policies than the EU, or when EU products are replaced by more carbon-intensive imports. In order to minimize "Carbon Leakage" and additionally drive carbon neutral industry in third countries, the EU enacted the Carbon Border Adjustment Mechanism (CBAM) in its transition phase on October 1, 2023. Once fully implemented in 2026, EU-based importers of CO2-intensive goods will be required to purchase CBAM allowances, as well as report by May 31 of each year the volume of products imported into the EU in the previous year and the emissions they contain. Tropag is already actively working with its suppliers to implement this.
23.10.2023