How Carbon Border Taxes Are Reshaping Global Trade

The European Union's Carbon Border Adjustment Mechanism went into full effect in January 2026, and it's already changing how companies source steel, aluminum, and cement. Lucas breaks down exactly how the CBAM works—importers must buy certificates at a price tied to the EU Emissions Trading System, currently around 80 euros per ton of CO2. He explains why this effectively creates a carbon tariff on goods from countries with weaker climate policies. Luna pushes back on whether this hurts developing nations, and Lucas cites World Bank data showing that export-dependent economies like India and Turkey are scrambling to set up their own carbon pricing systems to avoid losing market access. The episode also covers how companies like ArcelorMittal and Volkswagen are adjusting supply chains. The hosts close by asking whether CBAM could fragment global trade into climate-aligned blocs. #CarbonBorderTax #CBAM #EUCarbonMarket #ClimatePolicy #GlobalTrade #SupplyChain #CarbonPricing #EmissionsTrading #GreenTariff #SteelIndustry #Aluminum #Cement #ArcelorMittal #Volkswagen #WorldBank #Economics #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo