In early 2026, the EU extended its domestic carbon pricing to key products from beyond its borders. This is managed through the "Carbon Border Adjustment Mechanism" (CBAM). Exporters of polluting goods to the EU must pay a climate tariff, unless their country has its own pricing scheme.

In early 2026, the EU extended its domestic carbon pricing to key products from beyond its borders. This is managed through the “Carbon Border Adjustment Mechanism” (CBAM). Exporters of polluting goods to the EU must pay a climate tariff, unless their country has its own pricing scheme.

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