The EU will introduce a carbon border adjustment mechanism (CBAM) on October 1, 2023. The main idea is to apply the same carbon price to imported emission-intensive goods as if they had been produced under EU carbon pricing rules (EU ETS). This is intended to prevent the relocation of domestic industry, which has to bear rising CO2 costs within the EU ETS, to countries without comparable carbon pricing. This would not protect the climate. The factsheet explains the objectives and functioning of the new climate protection instrument.