EU's carbon border tax on heavy industry goods goes into effect risking trade escalation
Euronews.com••world
Key Points:
- Starting January 1, the EU will implement the Carbon Border Adjustment Mechanism (CBAM), requiring imports of steel, aluminium, cement, and other heavy goods to pay for their CO2 emissions to protect EU manufacturers from unfair competition.
- The CBAM has sparked opposition and potential trade tensions, notably from the US, China, India, Russia, South Africa, and Egypt, with concerns about protectionism and WTO compatibility.
- A three-year transition phase began in 2023 focusing on emissions reporting, with full carbon certificate purchases required from 2026, potentially increasing costs for importers and exporters lacking precise emissions data.
- The EU aims to use CBAM revenues, estimated at €1.5 billion by 2028, to fund
