Bogdan Gecić, Founding Partner at Gecić Law, recently spoke to Euractiv Serbia and shared his insights on the critical changes in international trade likely to ensue as a result of the European Union’s groundbreaking Carbon Border Adjustment Mechanism (CBAM) regulation. The regulation entered its transitional phase on October 1, 2023. Moreover, Bogdan detailed the ramifications for businesses. The article is titled “CBAM: Why is It Important and What Do We Need to Know?”
The article clearly explains the motivation and reasoning behind this unique regulation. With the CBAM, the EU pioneers the world’s first carbon border tax on imports into the EU. Accordingly, the article offers a deep dive into the potential implications for economies and businesses worldwide. It also outlines crucial aspects where companies should brace themselves for the forthcoming changes.
“CBAM is a significant step in the EU’s climate policy. However, its effects transcend environmental considerations, as they will likely have considerable implications for international trade and operational dynamics in various sectors. The European Union is leveraging the ‘Brussels Effect,’ banking on CBAM becoming a golden standard in this domain, akin to how GDPR influenced global data protection standards. This ensures that companies outside the EU align with its laws, creating a domino effect globally,” Bogdan said.
To read the full article (in Serbian), please click here.
