The biggest shake-up of green trade rules in decades takes effect today, requiring companies exporting steel, cement, and other high-carbon goods into the EU to prove compliance with low-carbon standards—or face penalties.
The new Carbon Border Adjustment Mechanism (CBAM) is designed to prevent carbon leakage and ensure cheaper, high-carbon imports do not undercut EU industries. But experts warn that uncertainty over enforcement and the UK’s failure to secure an agreement with Brussels could create confusion in the early phase.
European Commission executive vice-president Stéphane Séjourné said CBAM would support—not hinder—industrial decarbonisation. “This reform ensures a level playing field between EU and non-EU producers, strengthens competitiveness, and rewards low-carbon investment,” he said.
Many countries had expected the EU to dilute or delay the so-called “green tariff”, as has happened with other environmental rules. Instead, the bloc has pressed ahead despite objections from China, the US, Australia, and others, signalling its resolve to embed carbon costs into global trade.
The impact could be immediate. Chinese steel may lose its price advantage, but surplus high-carbon products could be redirected to markets with weaker controls, raising fears of dumping in the UK and elsewhere. The UK is expected to introduce its own CBAM next year, but until then, carbon pricing is set to reshape global trade flows. Read More
News Credit: The Guardian
Picture Credit: Christopher Furlong/Getty Images