Carbon pricing

Carbon pricing assigns a financial cost to carbon emissions or to the emissions embodied in traded goods. In the CBAM context, the mechanism is linked to the carbon price applied to goods entering the EU and is designed to complement the domestic pricing of emissions under the EU Emissions Trading System. This concept covers policy instruments, implementation rules, reporting and financial arrangements that influence how carbon costs are measured or paid. It is relevant to developments involving imported materials, emissions-related trade measures and efforts to promote more consistent carbon pricing across jurisdictions.