EU green tariff on high carbon imports comes into force

Mace | 2nd January 2026 | Lobbying, Policy & Think Tanks
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The EU’s new green tariff regime begins, applying carbon costs to selected imports and reshaping how climate policy intersects with trade.

The European Union’s new green tariff regime on high carbon imports has entered into force, marking a significant change in how the bloc connects climate policy with trade. The rules apply under the Carbon Border Adjustment Mechanism, which is intended to place a carbon price on certain imported goods equivalent to that faced by EU producers under the emissions trading system. The mechanism has moved into force following several years of legislative negotiations between EU institutions and member states. Under the system, importers of selected carbon intensive products are required to meet reporting and adjustment obligations linked to the embedded emissions of their goods. The initial scope covers sectors including steel, aluminium, cement, fertilisers, electricity and hydrogen. These industries are viewed by EU policymakers as both emissions heavy and exposed to international competition, making them central to concerns about carbon leakage. The mechanism operates alongside the EU em...

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