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International Law

Mar. 25, 2025

Revisiting CBAM and its impact on California amidst global trade tensions

The EU's Carbon Border Adjustment Mechanism (CBAM), starting in 2023, targets carbon-heavy imports like steel and cement, presenting both challenges and opportunities for California exporters as they navigate evolving climate rules and trade tensions.

Roberto Escobar

Roberto "Bobby" Escobar is general counsel, a labor and immigration advisor, and an environmental lawyer in Michigan and California.

Revisiting CBAM and its impact on California amidst global trade tensions
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The European Union's Carbon Border Adjustment Mechanism (CBAM), introduced in its transitional phase on Oct. 1, 2023, serves as a key climate measure aimed at reducing carbon leakage by applying a carbon price to imported goods. CBAM targets carbon-intensive products such as cement, iron and steel, aluminum, fertilizers, electricity, and hydrogen, with the scope expected to expand over time. Full implementation begins on Jan. 1, 2026, at which point EU importers will need to ...

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