Carbon Border Adjustment Mechanism (CBAM) is a policy tool proposed by the European Union to address carbon leakage and encourage global climate action. It applies a carbon tax on imports from countries with less stringent carbon emission regulations, ensuring that the price of imported goods reflects their carbon content.
The goal of CBAM is to level the playing field between EU industries, which are subject to strict carbon regulations, and foreign producers who may operate under looser environmental standards. By imposing this adjustment, CBAM incentivises producers outside the EU to adopt cleaner technologies and reduce their carbon emissions.
The boTec Real-time PCF Solution supports compliance with the Carbon Border Adjustment Mechanism (CBAM) by collecting and aggregating accurate emissions data. This helps companies to document product-specific carbon footprints, simplify compliance processes and increase transparency and adaptability throughout the supply chain.
