We as a Carbon Border Adjustment Mechanism, the European Union is leading global efforts to combat climate change. The European Green Deal outlines the ambitious EU goal of reducing carbon emissions by 55% from 1990 levels by 2030 and turning the continent into a climate-neutral region by 2050.Our plan to do this includes the July 2021 package, which will solidify the EU's position as a global climate leader and support the EU's climate ambitions. The Carbon Border Adjustment Mechanism (CBAM) should support the EU's enhanced ambition for climate mitigation. This climate measure ensures WTO compatibility and should reduce the danger of carbon leakage. There is a significant risk of "carbon leakage"—that is, EU-based businesses moving carbon-intensive production overseas to take advantage of lax standards or EU products being replaced by more carbon-intensive.