The European Parliament on March 10 backed a Carbon Border Adjustment Mechanism which would place a charge on the carbon content of emissions-intensive goods imported into the EU from 2023.
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The CBAM aims to level the international playing field for European raw materials producers and is intended to replace free carbon allowances for those industries under the EU Emissions Trading System. However, industrial companies want to maintain free allowances, setting the stage for claims of "double protection" and potential legal challenges from Europe's trading partners under the WTO.