Consider the following statements regarding the EU's Carbon Border Adjustment Mechanism (CBAM) and the concepts of embedded emissions accounting and carbon leakage prevention in international trade:

Statements

1. CBAM is designed to prevent carbon leakage by ensuring that imported carbon-intensive goods face a carbon price comparable to that paid by EU domestic producers, thereby levelling the competitive playing field.
2. Under CBAM, the legal obligation to purchase and surrender CBAM certificates rests with the exporting country's government, which then collects the corresponding amount from its domestic manufacturers.
3. Embedded emissions accounting under CBAM requires importers to account not only for direct emissions generated within a factory but also for emissions associated with input materials and electricity used in production.