CBAM, or Carbon Border Adjustment Mechanism, is a policy tool designed to address the risk of carbon leakage—where businesses move production to regions with less stringent carbon regulations to avoid costs. CBAM aims to ensure a level playing field by imposing tariffs on carbon-intensive goods imported into jurisdictions with stringent climate policies. CBAM Reporting, therefore, refers to the process of accurately measuring and reporting the embedded carbon emissions associated with exported products, ensuring compliance with CBAM regulations.