Carbon border tax

A carbon border tax is a tax levied on carbon emissions caused by imported goods purchased from countries having less stringent climate policies. It aims to create a level-playing field between the imports and domestic production.
In line with the idea of carbon border tax, the European Union has proposed Carbon Border Adjustment Mechanism (CBAM), which aims to address ?carbon leakage? caused when companies move to places with cheaper pollution costs and more lenient climate regulations. Recently, the BRICS countries jointly opposed the CBAM in the New Delhi Statement on Environment.