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EU carbon border tax causing headaches over compliance, WTO compatibility

By Eleonora Rinaldi and Oscar Pandiello ( November 19, 2025, 15:30 GMT | Comment) -- The European Commission is under pressure as it drafts key rules around the EU's Carbon Border Adjustment Mechanism ahead of its full entry into force on Jan. 1. The proposals, expected in the coming weeks, aim to clarify the new carbon border levy's implementation but could instead deepen uncertainty and even face challenges before the World Trade Organization for breaching trade law, specialists said.The European Commission is walking a tightrope as it prepares urgent rules for implementing its tool to fight carbon leakage, the Carbon Border Adjustment Mechanism....

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