In our understanding as Carbon Border Adjustment Mechanism, global solutions are required to address the global issue of climate change. There is a chance of so-called "carbon leakage" as the EU increases its climate ambition and many non-EU nations continue to have less restrictive climate policies. Carbon leakage happens when EU-based businesses relocate their carbon-intensive production to countries with laxer climate regulations than the EU or when more carbon-intensive imports replace EU products. The CBAM will guarantee that imports' carbon price equals domestic production's carbon price. Verifying that a price has been paid for the embedded carbon emissions generated in producing specific goods imported into the EU does not compromise the EU's climate objectives.