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The European Union will implement the Carbon Border Adjustment Mechanism (CBAM) starting January 1, 2026, targeting imports of key products such as steel, aluminum, and cement. This initiative aims to ensure non-EU CO2 emitters face costs comparable to EU producers, requiring importers to register and purchase CBAM certificates based on carbon emissions. The EU plans to phase out free quotas for high-emission sectors by 2034, with ongoing discussions for expanding the mechanism's scope by 2028.