The CBAM is a mechanism that sets a carbon price on certain imports to prevent carbon leakage and encourage cleaner industrial production. It aims to put a fair price on the carbon emitted during the production of carbon intensive goods that are entering the EU, and to encourage cleaner industrial production in non-EU countries.  The CBAM is being phased in.

The European Union continues to promote corporate accountability and sustainability by adopting the Corporate Sustainability Due Diligence Directive (CSDDD). This landmark directive, approved by the EU Council, represents a pivotal step forward in embedding ethical and sustainable practices across corporate activities and supply chains within the EU.

The Sustainable Finance Disclosure Regulation (SFDR), which took effect in March 2021, represents a significant step in the EU's initiative to inject transparency into the financial market's approach to ESG factors. It creates a standardised framework for reporting ESG considerations, and disclosing how sustainability risks are integrated into investment decisions.

As the European Union continues its journey towards a sustainable future, the EU Taxonomy emerges as a pivotal framework for defining and promoting sustainable economic activities. Launched with the EU’s ‘Fit for 55’ climate targets, the EU Taxonomy is part of the broader Sustainable Finance Package aimed at redirecting capital flows toward sustainable investments.