The EU's European Green Deal, launched in 2019, aims to make Europe the first climate-neutral continent by 2050 through policies on clean energy, circular economy, sustainable transport, and a _____ mechanism to prevent carbon leakage.
- tariff
- border adjustment
- subsidy
- quota
Answer: border adjustment
The Carbon Border Adjustment Mechanism (CBAM) puts a carbon price on imports of certain goods (cement, iron, steel, aluminum, fertilizers, electricity). It ensures imported products face equivalent carbon costs as EU producers, preventing relocation of emissions and encouraging global climate ambition.