The Carbon Border Adjustment Mechanism (CBAM) is a carbon tariff on carbon intensive products, such as cement and some electricity, imported by the European Union. Legislated as part of the European Green Deal, it takes effect in 2026, with reporting starting in 2023. CBAM was passed with 450 votes for, 115 against, and 55 abstentions. The price of CBAM certificates would be linked to price of EU allowances under the European Union Emissions Trading System and it is designed to stem carbon leakage from countries without a carbon price. Some observers have warned about the potential economic risks to the Global South, as developing nations may struggle to decarbonise fast enough to remain competitive in the global market. The transition to a low-carbon economy requires technology and investment beyond the resources of many countries; proposed solutions include technology transfer and green finance. References External links Carbon Border Adjustment Mechanism proposal Customs duties Greenhouse gas emissions Emissions trading Climate change policy