According to the report, the European Union (EU) has announced plans to implement the Carbon Border Adjustment Mechanism (CBAM) in 2026. Recently, the EU has considered simplifying and adjusting the CBAM policy, which would reduce the number of companies subject to the carbon border tax in the future.

The EU plans to adjust the carbon border tax, reducing the scope of taxation to 20% of the original proposal. This adjustment will focus on the major carbon emitters that account for 97% of total carbon emissions, while tens of thousands of companies will be exempt from paying CBAM certificate fees.

The EC stated that the reform of the CBAM will benefit European industry and mitigate the impact of the carbon tax on EU companies.