Knowing the Mechanisms of Carbon Border Adjustment (CBAMs)

Being an adaptive Carbon Border Adjustment Mechanism in Agile Advisors, Addressing the climate catastrophe has become a cornerstone of U.S. national and international security policy. The federal government has undertaken various climate-related initiatives in the last several years, such as developing cabinet-level plans for climate adaptation and resilience, funding and legislation from Congress, and creating greenhouse gas (GHG) regulations. Although numerous legislative initiatives are still being discussed, carbon border adjustment mechanisms, or CBAMs, are coming back. As previously discussed by ASP, the climate catastrophe can be lessened with current trade methods. Among them is a CBAM. A CBAM is essentially a tariff or tax on carbon emissions, especially for goods that are carbon-intensive, such as steel and aluminum.