European Union Announces Historic Climate Deal with Carbon Border Tax

The European Union has implemented its Carbon Border Adjustment Mechanism (CBAM), the most ambitious climate trade policy in history, imposing carbon tariffs on imports from countries that don't meet EU emission standards.

Impact

The policy affects $800 billion in annual imports including steel, aluminum, cement, fertilizers, and electricity. Countries including China, India, and the US face tariffs of 5-20% on affected goods unless they implement equivalent carbon pricing.