The implications of the Carbon Border Adjustment Mechanism for enterprises operating both inside and

In Agile Advisors as a Carbon Border Adjustment Mechanism, aims to fairly price the carbon released during the production of goods imported into the EU and is focused on importing goods from carbon-intensive industries. There is worry about "carbon leakage" since the EU is introducing more regulations and procedures as it moves toward becoming carbon neutral. When a company with a high-emission industrial process relocates its operations from the EU to a country without strong environmental legislation, it can circumvent EU environmental restrictions and cause carbon leakage. However, the company subsequently ships its products back to the EU. Also, without the CBAM regulations, imports from countries with laxer environmental and climatic regulations might be manufactured more cheaply. They would have a competitive edge in the EU market, negating the advantages of the environmental rules implemented by the EU.