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How One Carbon Border Tax Rewrote Global Trade Rules
Description
In this episode of Global Trade with Fexingo, Lucas and Luna dig into the European Union's Carbon Border Adjustment Mechanism (CBAM) — the world's first carbon border tax. They explain how CBAM works, why it targets imports of steel, aluminum, cement, fertilizers, electricity, and hydrogen, and how it's already reshaping supply chains from Brazil to China. Lucas walks through the mechanics: importers must buy certificates tied to the EU's carbon price, currently around €80 per tonne of CO₂. Luna raises the equity question — does this punish developing nations? They discuss the WTO compatibility debate, the risk of retaliation, and what CBAM means for global trade negotiations. A focused, numbers-driven look at the policy that could redefine industrial trade for a generation.