In our opinion as Carbon Border Adjustment Mechanism, The CBAM rule would extend the carbon price paid by EU companies to overseas manufacturers of the same commodities by requiring importers of specific carbon-intensive items to pay a levy on their importation equal to the charge imposed on analogous domestic sectors under the EU ETS.1. The primary goal of the regulation is to mitigate the risk of "carbon leakage," which would arise if covered operators moved their operations to jurisdictions outside the EU ETS's purview or if EU companies increased their imports from such jurisdictions, offsetting the reductions in greenhouse gas ("GHG") emissions within the EU under the EU ETS.2.On October 1, 2023, the European Parliament and the Council decided that the CBAM rule would go into effect.3 There will be a transition period of three years, during which time there will be no duties other than reporting.4