Fit for CBAM: Carbon Pricing and Industrial Decarbonisation in CBAM Sectors

The EU Carbon Border Adjustment Mechanism (CBAM) puts a price on embedded emissions of certain carbon-intensive goods imported into the EU. As a result, products with low embedded emissions have a comparative advantage. Some CBAM-relevant Brazilian and Turkish companies are heavily reliant on EU-exports. This creates incentives for them to invest in low-carbon production technologies and for their governments to introduce effective carbon pricing that can be deducted from CBAM charges. The project strengthens public and private sector capacities by providing know-how on implementing Emission Trading Systems (ETS), decarbonising industrial production, and offering financial mechanisms for companies investing in low-carbon technologies. By sharing the knowledge generated through these efforts, the project turns Türkiye and Brazil into global multiplicators on the interlinked issues of carbon pricing, industrial decarbonisation, and CBAM readiness.