CBAM to Take Effect on January 1, 2026, Amid Criticism from Emerging Markets

The EU's Carbon Border Adjustment Mechanism (CBAM) will take effect on January 1, 2026, targeting imports of cement, iron, steel, aluminum, fertilizers, electricity, and hydrogen. Despite strong criticism from emerging markets, multinational companies from countries such as Brazil, China, India, and South Africa are preparing to comply with the new trade model.

A report by the World Economic Forum indicates that companies are investing in decarbonization technologies and adopting internal carbon pricing to guide capital decisions. The CBAM is intended to prevent carbon leakage to countries with less stringent climate policies, with 80 carbon taxes or regulated markets currently in place globally, covering 28% of global emissions.

Brazil aims to implement its emissions trading system between 2030 and 2031, potentially benefiting from the CBAM in the long term. The report highlights Petrobras's proactive measures in carbon pricing and investments in emission reduction technologies.