The Carbon Border Adjustment Mechanism (CBAM) is a tool designed to prevent carbon leakage by putting a price on carbon emitted during the production of carbon intensive goods entering the EU. This ensures that EU manufacturers remain competitive while encouraging global industry to decarbonize. Businesses in Northern Ireland must understand how these regulations affect their imports and exports, particularly for sectors like steel, aluminum, and fertilizers. Proper reporting and compliance are essential to avoid financial penalties and maintain market access.
