How will CBAM ensure fair treatment of EU and non-EU producers?

Alignment with EU ETS and consideration of free allowances

CBAM is designed to ensure that imported goods receive "no less favourable treatment" than EU products.

This is achieved through three key features:

1. Consideration of actual embedded emissions
2. Alignment of CBAM certificate prices with EU ETS allowance prices, and
3. Deduction of carbon prices paid in third countries. 

Additionally, during the phase-out of free allowances under the EU ETS, CBAM will be adjusted to reflect only the proportion of emissions not covered by these free allowances, ensuring equivalent treatment.