Overview
- Brussels’ Carbon Border Adjustment Mechanism now levies charges on imports of CO₂‑intensive goods such as cement, fertilizer and steel from countries with looser climate rules.
- Following early pushback, the EU carved out exemptions for small and medium‑sized firms and for private buyers, yet importers still must navigate a 252‑page reporting guide.
- Industry groups and economists say tracking embedded emissions across global supply chains is technically difficult and costly, raising fears of lost competitiveness and production shifts.
- Economist Gabriel Felbermayr urges adjustments including export subsidies, a uniform import levy, or continued free allowances to ease burdens without scrapping the mechanism.
- Political resistance has intensified, with Brazil’s president denouncing “green neocolonialism,” Qatar threatening gas reprisals over an EU supply‑chain law, and President Trump rejecting climate tariffs, while ETS revenues were reported at a record €21.4 billion for 2025 with carbon near €90 per tonne.