Hey climate champs! 🌱 Europe’s long-awaited Carbon Border Adjustment Mechanism (CBAM) goes fully live on January 1, 2026. But is it making waves beyond the EU? Let’s dive in! ➡️
What’s CBAM all about?
CBAM is the EU’s way of leveling the playing field: importers of steel, aluminum, fertilizer and other carbon-heavy goods must declare their embedded CO2 and pay a levy if they exceed EU emission prices. Think of it as a “carbon toll” at the border. 🚧💨
The EU’s push
At the UN talks in Brazil last November, EU climate chief Wopke Hoekstra stressed one point: “Pricing carbon is something we need to pursue with as many as possible, as quickly as possible.” 🌍⏳
Global ripple effects
According to Aurora D’Aprile from the International Emissions Trading Association, 2025 saw a clear step-change: China ramped up its own carbon-pricing scheme, and Türkiye finally launched its long-awaited emissions trading scheme (ETS). Japan even cited CBAM when pushing new climate rules! 🇨🇳🇹🇷🇯🇵
Other big players like the UK and Canada are also eyeing EU-style border levies or similar carbon rules at home. As trade lawyer Marios Tokas puts it, the size of the European market “sharpened” the urgency for others to act. ⚖️💼
Why it matters for us
For South and Southeast Asian businesses that export carbon-intensive goods, CBAM means a choice: pay up at the EU border, or cut emissions at home by setting a local carbon price. It’s a nudge towards greener production—innovation, cleaner tech, and a shot at global markets without extra fees. 💡🌏
Keep an eye on it
As we head into 2026, CBAM could become the blueprint for global climate policy. Whether you’re a techie, an eco-entrepreneur, or a conscious consumer, the buzz around carbon pricing is one to watch. 👀⚡
What do you think? Could your country be next to join the carbon-pricing club? Drop your thoughts below! ⬇️
Reference(s):
Europe wanted its carbon border tax to go global. Is it working?
cgtn.com
