Being a Carbon Border Adjustment Mechanism, although border carbon adjustments and border tax adjustments are two of the various names for carbon border adjustments, they all have the same goal: Discuss how different trading partners' national climate policies and the ensuing production's emissions intensity differ. Carbon border adjustments, which consider variations in climate ambition and goods production emissions, safeguard industrial competitiveness by preventing the so-called "carbon leakage" of production and emissions to nations with less stringent environmental regulations or dirtier production practices. Carbon leakage is the geographic transfer of production from one country to another without a net reduction in greenhouse gas emissions worldwide. It is possible to expand the CBAM to include more items before the conclusion of the transitional period.
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