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EU's Carbon Mechanism Targets Refrigerators, Car Parts by 2026

12/18/2025

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Story summary
  • The European Union's Carbon Border Adjustment Mechanism expands to refrigerators and car parts starting January 2026.
  • The measure aims to prevent carbon leakage by ensuring foreign companies meet EU emissions standards and faces criticism from China and India as protectionist.
  • The EU expects CBAM to generate about €2.1 billion by 2030, with 23% revenue growth from new products.
  • The proposal will be reviewed by the European Parliament.