"EU Takes Global Lead with Groundbreaking Carbon Border Tariff Initiative"
The European Union has initiated the first phase of the world's first carbon border tariff system, known as the Carbon Border Adjustment Mechanism (CBAM). This system aims to impose CO2 emissions tariffs on imported goods such as steel, cement, and others to prevent more polluting foreign products from undermining the EU's green transition. The EU importers will have to report greenhouse gas emissions embedded in the production of certain imported goods, and from 2026, they will need to purchase certificates to cover these emissions. The goal is to encourage global greener production and prevent European manufacturers from relocating to countries with lower environmental standards. The border levy is in line with World Trade Organization rules and seeks to raise climate ambition worldwide.