EU Parliament Rejects Commission Safeguard for CBAM, Tightens Mechanism

MEPs voted to strengthen the EU's Carbon Border Adjustment Mechanism (CBAM) by rejecting the European Commission's proposed protective measure, signaling a harder line on carbon leakage protection. The move tightens the mechanism's scope and enforcement, potentially increasing compliance costs for importers of carbon-intensive goods. This reflects growing EU legislative assertiveness on climate trade policy, though the full impact on trade flows and diplomatic relations remains uncertain.