To help you as Carbon Border Adjustment Mechanism, The CBAM was eventually approved in May 2023 following four years of hard talks between the European Commission (EC), the Member States, and the European Parliament. The EC first proposed it in 2019 as part of the European Green Deal. The primary goal of the CBAM is to level the playing field for European businesses responsible for paying for production-related CO2 emissions with non-EU importers. The EU intends to prevent "carbon leakage," in which companies relocate their manufacturing to nations with laxer climate regulations, by imposing a tax on importers from the EU equal to the difference between the EU carbon price and the carbon price in the country of origin, if any. The levy is also essential for raising funds for the EU budget, reducing its reliance on contributions from Member States.