The EU Carbon Border Adjustment Mechanism launches January 1, 2026, requiring importers to purchase certificates for embedded CO₂ emissions in cement, aluminum, fertilizers, metals, hydrogen, & electricity. Certificate prices mirror EU Emissions Trading System allowances at €60-80 per metric ton. A 50-metric-ton threshold exempts 90% of importers, mainly small enterprises. December 2025 expansion adds 180 steel & aluminum-intensive products including pipes, machinery, & appliances. Non-compliance incurs €100 per metric ton penalties plus potential authorization revocation. The mechanism addresses carbon leakage whilst potentially affecting over €100 billion in annual trade.