CBAM, short for the Carbon Border Adjustment Mechanism, is also referred to as a carbon border tax or carbon tariff. CBAM is a policy introduced by the EU to address climate change, reduce carbon emissions, and protect the competitiveness of its industries.
The EU Deforestation Regulation (EUDR), formally adopted by the European Union in 2023, is an environmental legislation aimed at eliminating products linked to deforestation or forest degradation from the EU market by strictly regulating commodity supply chains. The regulation entered into force on June 29, 2023, with compliance obligations phased in after December 2025 for large enterprises and June 2026 for small and medium-sized enterprises (SMEs).
