Carbon Credits May Not Clear CBAM's Article 9 Bar

Carbon Credits May Not Clear CBAM's Article 9 Bar

A carbon credit refers to the certificate that represents a tonne of greenhouse gases that has been successfully reduced, avoided, or offset. However, carbon credits may not be eligible under the Carbon Border Adjustment Mechanism (CBAM) due to Article 9 restrictions. The CBAM is a mechanism that aims to level the playing field for European industries by imposing a carbon price on imported goods. Article 9 of the CBAM regulation restricts the use of carbon credits as a means of compliance. This means that companies may need to find alternative ways to meet their carbon reduction targets.