On October 1, 2023, the European Union carbon border adjustment mechanism (hereinafter referred to as " CBAM”), starting with a transition phase that lasts until the end of 2025 ( transitional period ). CBAM was introduced by EU Regulation 2023/956 establishing a carbon border adjustment mechanism (hereinafter referred to as " regulation ") and further supplemented by Commission Implementing Regulation 2023/1773 of 17 August 2023. The purpose of the CBAM is twofold. The primary objective is to address greenhouse gas emissions contained in goods when they are imported into the EU customs territory in order to prevent carbon leakage, thereby reducing global carbon emissions and supporting the goals of the Paris Agreement. The secondary goal is to financially motivate operators based in countries outside the EU to reduce carbon emissions in their production processes. In addition, the CBAM will level the playing field between producers of goods based in non-EU countries who export goods to importers based in the EU, and European producers already subject to a carbon price under the EU Emissions Trading System (so-called “ EU ETS "). (Saman Bugeja).