The European Commission (EC) will phase in a Carbon Border Adjustment Mechanism (CBAM) on energy-intensive imports starting in 2026. The proposed CBAM would initially apply to five sectors: electricity, iron and steel, fertilizers, aluminum and cement. The levy is designed to prevent carbon leakage and provide parity between foreign and local producers. In this session we will explore the implications of CBAM for the EU and for its trading partners, with special focus on developing Asia Pacific.