EU member states have reached agreement on EU carbon border tax

As the world's first proposal to address climate change in the form of a carbon tariff, it would have profound implications for global trade.
It will be implemented from January 1, 2023, and the scope of collection includes industries such as cement, fertilizer, aluminum and steel. The transition period from 2023 to 2025 will be implemented, and carbon tariffs will be formally introduced in 2026.
Carbon tariffs can erode industry profits by as much as 40%, and companies along the entire value chain will feel the impact of increased costs.
For external companies exporting to the EU, carbon tariffs will directly affect the competitive landscape and, to a greater extent, the trade landscape. If these companies fail to adapt quickly to the New Deal by reducing their carbon footprint, they could lose market share and be replaced by other EU companies or more carbon-efficient companies in other countries.