What exactly is CBAM—and why should business leaders care now? The EU’s Carbon Border Adjustment Mechanism (CBAM) has moved from concept to reality, reshaping how carbon costs travel across borders. Since October 2023, the transitional phase requires importers of carbon-intensive goods—steel, cement, aluminium, fertilisers, electricity, and hydrogen—to report embedded emissions. Financial obligations begin in 2026. In simple terms, CBAM levels the playing field between EU pro

A carbon tax is a government charge placed on greenhouse-gas (GHG) emissions , usually applied to fossil fuels based on their carbon content (e.g., per ton of CO₂e ). The policy goal is to raise the cost of emitting so companies and consumers shift to lower-carbon options, while generating public revenue that can be recycled through rebates, tax cuts, or climate spending. Carbon taxes typically work in two ways: Upstream fuel tax : levied on coal/oil/gas producers or import