EU’s carbon tax on China EVs sparks debate on environmental progress, economic burden in Asia
However, navigating the growing complexity of environmental regulations may require cooperation among companies rather than competition to maintain market access.
Since late last year, the EU has rolled out a Carbon Border Adjustment Mechanism (CBAM) – slated to expand in its scope from 2026 – that aims to incentivise exporting countries to decarbonise by levying a carbon tax.