Describe the recently developed Carbon Border Adjustment Mechanism (CBAM)

We believe that Agile Advisors' Carbon Border Adjustment Mechanism, The European Union has pledged to cut its net greenhouse gas emissions by at least 55% by 2030 compared to 1990. In the EU Member States, Norway, Iceland, and Liechtenstein, the EU Emissions Trading Scheme (EU ETS 1) provides standardized greenhouse gas emissions pricing for energy-intensive sectors. The present strategies to prevent carbon leakage, such as moving production to third countries due to costs associated with EU climate policies, have reduced the price signal. Those actions are intended to be replaced by the carbon border adjustment mechanism (CBAM). The CBAM, a mechanism designed to ensure fairness, will guarantee that the cost of carbon is borne equally by goods produced in the EU and those imported into the EU.