The European Union will soon require EU importers of certain carbon-intensive products specifically, iron and steel, aluminum, fertilizer, cement, electricity, and hydrogen to declare greenhouse gas emissions GHGs embedded in their imports and pay import taxes that mirror domestic EU carbon prices. The new regulation referred to as the carbon border adjustment mechanism or CBAM is intended to “level the playing field” between EU producers of those products who have to pay an internal EU carbon price and foreign producers who do not. GHG reporting requirements will take effect on October 1, 2023 and the import tax will apply as of January 1, 2026.