EU tightens rules on suspending carbon border fee for imports

EU economy ministers agreed to restrict the circumstances under which the bloc can suspend its carbon emissions fee on imports. The decision aims to provide more certainty for low-carbon investments by making it harder to pause the Carbon Border Adjustment Mechanism (CBAM). The policy imposes a fee on emissions from imported goods like steel, cement, and fertilisers, protecting European industries from cheaper, more polluting foreign products. The agreement was backed by majority support, though countries including Slovakia, Romania, and Lithuania declined to back it. The move signals the EU's intent to maintain the integrity of its carbon pricing system and avoid policy reversals that could undermine investor confidence in decarbonisation projects across the bloc.