Recently, the European Union's Carbon Border Adjustment Mechanism (CBAM) regulation, which is the world's first "carbon tax," began implementation on October 1st. There is a transitional period from now until 2025, with full implementation gradually taking place between 2026 and 2034.
According to the new regulations, the European Union will impose additional taxes on steel, aluminum, cement, and fertilizers imported from abroad. EU importers are now required to report the greenhouse gas emissions associated with the production of these goods. Starting from January 1, 2026, importers must purchase emission certificates, with prices based on the carbon price paid for producing these goods within the European Union.
It is reported that the new policy aims to encourage global manufacturers to transition to more environmentally friendly production methods and prevent EU-based companies from profiting by relocating production facilities to countries and regions with less stringent environmental regulations.
At the same time, the European Union has previously announced its goals to reduce greenhouse gas emissions by at least 55% compared to 1990 levels by 2030 and achieve carbon neutrality by 2050.