EU carbon border tax comes into force tomorrow

BRUSSELS, 31st December, 2025 (WAM) — The European Union will begin implementing the Carbon Border Adjustment Mechanism, CBAM, tomorrow, Thursday, 1st January 2026.
The mechanism is expected to have a limited impact on international trade, particularly as it currently covers less than 5 percent of the European Union’s imports of key products such as steel, aluminium, cement and fertilisers. However, its long-term implications could be broader as its scope is set to expand starting in 2028.
According to estimates by the Organisation for Economic Co-operation and Development, the mechanism currently targets only 303 products, representing around 3 percent of the European Union’s total imports. The International Monetary Fund has estimated that the share could reach 4.5 percent based on 2021 trade data.