Who Really Pays for Carbon Border Taxes? What Market Expectations Reveal
To global equity markets, the EU’s Carbon Border Adjustment Mechanism (CBAM) looks like another burden for European firms. The CBAM is the world’s first cross-border carbon tax. Beginning in 2026, it mandates EU firms importing carbon-intensive goods such as steel, cement, fertilizer and aluminum to pay for the emissions embedded in those imports. The mechanism complements the EU’s…