For people living in the European Union, the price of their next car, home renovation, and even local produce may soon reflect a climate policy that many have never even heard of. This new regulation, which comes fully into force on New Year’s Day, does not just target heavy industry—it affects everyday goods which now face an added carbon cost when they enter Europe.

The carbon border adjustment mechanism (CBAM) puts a carbon price on many imported goods—meaning that EU-based importers will pay for the greenhouse gases emitted during the production of certain carbon-intensive materials.

If goods come from countries with weaker climate rules, then the charge will be higher. To sell to the EU, producers will effectively need to show their goods aren’t too carbon-intensive.

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Origianl Creator:
Simona Sagone, The Conversation

Original Link: https://arstechnica.com/tech-policy/2025/12/how-europes-new-carbon-tax-on-imported-goods-will-change-global-trade/
Originally Posted: Sat, 20 Dec 2025 12:15:03 +0000