Global Implementation of Europe's Carbon Border Tax Sparks Trade Concerns
The European Union's carbon border tax, known as the Carbon Border Adjustment Mechanism (CBAM), has entered a trial period, requiring trading partners to report greenhouse gas emissions tied to their exports of certain goods. The aim of the tax is to protect EU companies from unfair competition and encourage other countries to implement their own carbon pricing. However, the CBAM has faced criticism from major trading partners, including Russia, China, the UK, and the US, who argue that it is discriminatory and harmful to global growth. Concerns have also been raised about the impact on the world's poorest countries and the readiness of businesses to comply with the paperwork requirements.