News
January 21
The European Union’s Carbon Border Adjustment Mechanism (CBAM) officially began full implementation, marking a significant shift in global steel trade and carbon policy. CBAM requires importers of carbon-intensive products—including steel—to purchase certificates reflecting the embedded CO₂ emissions of their goods, aligning import carbon costs with EU domestic producers under the EU Emissions Trading System (ETS). The mechanism aims to prevent carbon leakage, encourage decarbonization, and level the playing field for European manufacturers. However, its rollout has presented challenges for steel importers due to last-minute regulatory details and unexpected costs, highlighting the complexity of integrating climate policy into global trade frameworks. The new rules are expected to influence trade flows, supplier strategies, and competitiveness among major steel exporters throughout 2026.
