CAMBRIDGE – The European Union’s Carbon Border Adjustment Mechanism (CBAM), launched in October 2023, wants importers to report greenhouse-gas emissions from imported goods. Starting in January 2026, the EU will impose tariffs on imports from countries missing comparable carbon pricing. Targeting aluminum, iron, steel, cement, fertilizers, hydrogen, and electricity, CBAM targets to incentivize global carbon-pricing mechanisms. By taxing GHG emissions, the EU hopes to stop regulatory “leakage” and promote adherence to Paris Agreement’s emissions-reduction goals.
