The EU’s Carbon Border Adjustment Mechanism (CBAM), due to be fully operational by 2026, represents a major shift in global trade and climate policy.

Designed to impose a carbon tariff on imports of carbon-intensive goods such as steel, cement, aluminium and electricity, it aims to align with the EU’s broader Green Deal. The CBAM will effectively create a “carbon price” for products entering the EU market, incentivising exporters to reduce their carbon footprint...

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