EU Will Propose Measures to Close Loopholes in Carbon Border Levy

The European Union (EU) intends to propose measures by the end of 2023 to address loopholes in its carbon border adjustment mechanism (CBAM). The CBAM is a key policy aimed at preventing industries from relocating outside the EU as the bloc transitions to a more sustainable economy. The proposed measures are meant to strengthen the CBAM and ensure it effectively achieves its objectives. The CBAM imposes a carbon price on certain imported goods to create a level playing field with EU producers who are subject to the bloc's emissions trading system. The EU acknowledges that there are potential loopholes in the current CBAM design that need to be addressed. The upcoming proposals will aim to close these gaps and enhance the overall effectiveness of the carbon border levy in supporting the EU's climate goals. The details of the proposed measures have not been disclosed, but the EU's efforts to refine the CBAM demonstrate its commitment to implementing comprehensive policies to address climate change and maintain a competitive European market.