The Carbon Border Adjustment Mechanism (CBAM) is an ambitious climate change mitigation instrument of the European Union that will substantially affect trade in emissions-intensive goods. It holds major economic and legal significance for the steel and metals sector. This contribution examines the latest CBAM developments as set out in the European Commission’s most recent grand economic strategy, the Clean Industrial Deal of February 2025. Although CBAM is not yet fully operational at the time of writing, important reforms are already underway. The paper situates these developments within their economic and legal context, assessing their implications under WTO law.
Global Trade and Customs Journal