At the start of the new year, the world's first carbon tariff will take effect. The EU's Carbon Border Adjustment Mechanism will charge fees on certain imported products—and those fees will be based on the emissions tied to the manufacturing of those products. IISD Senior Associate Aaron Cosbey talks about how the tariff is supposed to work, and what other countries will be watching.
IISD in the news
December 29, 2025