From 2026 onwards, companies importing certain carbon-intensive products into the European Union will have to pay a surcharge. With this so-called CO₂ border adjustment mechanism (CBAM), the EU aims to prevent environmentally harmful competitive advantages from countries with less stringent climate regulations and to better protect European industry.
Initially, the measure will apply to sectors with particularly high emissions, including steel, aluminium, cement, fertilizers, electricity and hydrogen. Importers must prove how much CO₂ was emitted during production. If emissions exceed European standards, a corresponding levy becomes due. The intention is that, over time, foreign producers will either reduce emissions or lose their price advantage in the European market.
For European companies, the regulation is also seen as a way to counter “carbon leakage”, where production is relocated outside the EU to avoid stricter climate rules. Supporters therefore argue that the mechanism is not only a climate policy instrument, but also an industrial policy measure to protect competitiveness and jobs.
However, the new system also raises concerns. Critics fear trade conflicts, increased bureaucracy and retaliatory measures by trading partners. Emerging and developing countries in particular complain that the regulation could disadvantage their industries and hinder economic development. Within the EU, companies also warn of additional administrative burdens.
Despite this, Brussels considers the step necessary to enforce climate ambitions globally. The CO₂ border levy is intended to ensure that climate protection rules no longer become a disadvantage in international competition – and that imported goods are measured by the same standards as products manufactured in Europe.
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