This note on the EU’s Carbon Border Adjustment Mechanism (CBAM) summarizes the near-term requirements and strategic implications of the developing policy – insights relevant for sustainability leaders as well as their strategy and finance peers. While CBAM is currently in its first stage of reporting, the aim of the mechanism is to minimize “carbon leakage” which happens when companies transfer the production of goods to countries with lower emissions standards by implementing a cost of carbon i.e. a tax on products. Analysis includes country level trade flows into the EU of key industries (e.g. iron and steel, aluminum, cement, fertilizers, electricity, and hydrogen) as well as an overview of emerging policymaking in the United States and a bulleted list of CBAM FAQs. The note also provides a high-level overview of how corporates are planning for CBAM.