Videos
The CBAM mechanism will encourage third countries to adopt decarbonization policies
Description
The EU’s Carbon Border Adjustment Mechanism (CBAM) is more than a trade policy, it’s a powerful lever to stimulate climate action beyond Europe’s borders. In a recent appearance on Bloomberg TV Bulgaria’s Clean Energy program, Dr. Pavel Sheytanov, Corporate Trader at Vertis Environmental Finance, explained how CBAM forces importers of steel, aluminium, cement, hydrogen, electricity, and fertilizers to buy CBAM certificates to cover the embedded CO₂ emissions from their production.
Why does this matter? Because it protects European producers from unfair competition with lower-carbon standards abroad, while simultaneously encouraging exporting nations to adopt stricter decarbonisation policies. As more countries commit to carbon pricing, CBAM could reshape global industrial competitiveness and accelerate the shift to a cleaner economy.
In this interview, we will dive into:
- How CBAM works in practice and its connection to EU ETS / carbon markets
- The risks and opportunities for industries subject to CBAM
- What exporters and importers must do today to prepare
- How CBAM fits into Europe’s broader climate strategy
Stay with us as we unpack how this mechanism could push carbon pricing standards across continents, and impact business models worldwide.
