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01.06.2026 – In early 2026, the EU extended its domestic carbon pricing to key products from beyond its borders. This is managed through the “Carbon Border Adjustment Mechanism” (CBAM). Exporters of polluting goods to the EU must pay a climate tariff, unless their country has its own pricing scheme. A study finds that this could incentivise EU trade partners to adopt carbon pricing as well. In particular Canada, Japan, Taiwan and South Korea are found to be likely candidates, leading to 73 percent more CO₂ emissions being avoided compared to when only the EU applies its climate policy.