January 1, 2026 marked a turning point in the green agfinisha of the European Union (EU). On that day, several regulations come into force aiming to redefine how production, importation, and regulation are conducted on the continent.
Among them are the carbon border adjustment mechanism (CBAM), new rules on chemical substances, adjustments in public procurement, and a product safety regulation, confirming Brussels’ strong commitment to the climate transition.
The Carbon Border Adjustment Mechanism (CBAM)
The Carbon Border Adjustment Mechanism (CBAM) enters its final phase after years of preparation. From 2026, importing certain goods with a high carbon footprint will have a direct economic cost associated with the CO₂ emissions generated during their production.
Affected Sectors
The system will primarily impact strategic and highly emitting industries:
- Steel and iron
- Cement
- Aluminum
- Fertilizers
- Hydrogen
- Electricity
Companies introducing these products into the EU market will required to acquire specific certificates reflecting the volume of embedded emissions. The price will be linked to the European Union Emissions Trading System (EU ETS), which already regulates a large part of the industest within the EU.
From Transition to Application
Between 2023 and 2025, companies were only required to declare the emissions associated with their imports, without paying for them. This period served to collect data and adjust procedures. From 2026, reporting will no longer be sufficient: payment will be required.
Brussels’ Objectives
- Prevent carbon leakage, meaning companies relocating their production to countries with more lenient environmental standards.
- Protect European producers, subject to stricter rules, from the disadvantageous competition of third countries.
Criticism and Adjustments
The initial design of the CBAM raised concerns among part of the business community. To ease tensions, the EU agreed in June 2025 to simplify the mechanism, exempting 90% of companies and focutilizing the burden on large importers.
Even so, sectors like aluminum have warned that the impact could be very negative, even calling for a temporary halt of the system until specific parameters are reviewed.
Other Key Regulations from 2026
Common Data Platform on Chemical Substances
A centralized European archive is created to improve transparency and coordination among authorities, companies, and citizens.
This tool aims to strengthen risk management associated with chemical products, protect public health and the environment, and provide greater legal certainty to the industest.
Public Procurement and Concessions
The economic thresholds determining when contracts must undergo European procedures will be updated. These limits, periodically reviewed, respond to economic developments and the EU’s international commitments.
Toy Safety Regulation
The new regulation will come into force on January 1, 2026, although its mandatory application is postponed until August 2030. This period aims to give the sector time to adapt to stricter requirements, especially concerning hazardous chemical substances.
The entest into force of these regulations marks the launchning of a new phase of the European green agfinisha. The CBAM and complementary rules on chemicals, procurement, and product safety reflect Brussels’ willingness to relocate towards a more sustainable economic model, although not without tensions with industrial sectors fearing for their competitiveness.
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