In our role as Carbon Border Adjustment Mechanism, CBAM aims to ensure that imported commodities are subject to the exact emissions costs as products produced within the EU, thereby complementing the EU Emissions Trading System (EU ETS). By doing this, CBAM hopes to stop "carbon leakage," or the transfer of greenhouse gas emissions from the EU to non-EU nations. Since 2005, the EU ETS has been operational. It serves as the primary tool used by the EU to cut greenhouse gas emissions. The Member States allot a specific amount of emission allowances under the EU ETS, which are split between being given away for free and being auctioned off. The free distribution of EU ETS certificates to businesses engaged in energy-intensive industries has progressively decreased over time. However, this also raised the possibility of carbon leaks since several industries saw their production move to less expensive countries.