Carbon Border Adjustment Mechanism as proposed EU regulation to combat climate change

Purpose of the article Climate change is the key challenge facing the world today. Since the energy sector is responsible for two-thirds of global greenhouse gas emissions, transitioning from fossil fuels to clean energy is imperative. In 2019, the European Commission launched the Green Deal, a political project aiming to achieve the EU's ecological transformation by reaching carbon neutrality by 2050. To achieve this goal, the EU and its Member States are obligated to cut net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels. In 2021, the European Union announced a set of proposals to facilitate the implementation of the Green Deal. One key component is the carbon border adjustment mechanism (CBAM), which will be gradually introduced for certain imports from non-EU countries. This mechanism has significant implications for World Trade Organization (WTO) provisions. This article analyzes CBAM, its potential consequences for global WTO rules, and how Poland approaches the concept. It also examines how CBAM affects commercial activities, such as those of banks and importers, and identifies potential challenges associated with its implementation