The EU Risks International Retaliation Over CBAM

(Oxford Analytica) — One of the key elements of the EU’s ‘fit for 55’ regulatory package to achieve carbon neutrality by 2050, which is now before the European Parliament, is the Carbon Border Adjustment Mechanism (CBAM). The scheme will require non-EU producers to pay a fee on the iron and steel, cement, fertilizers, aluminum and electricity they export to the EU from 2026. This will aim to reflect the CO2 cost that EU producers pay under the EU’s Emissions Trading System (ETS).
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