1. Overview On December 11, 2024, the European Union (EU) announced the implementation of the world’s first Carbon Border Adjustment Mechanism (CBAM). The CBAM imposes additional tariffs on high-carbon products imported into the EU. It aims to support the EU’s 2050 carbon neutrality goals and promote fair trade practices. 2. Key Sectors Covered 2-1. Steel and Aluminum Carbon-intensive industrial products like steel and aluminum are prioritized. Imports with higher carbon emissions compared to EU-produced equivalents will face additional tariffs. 2-2. Cement and Chemical Products Cement and chemical products widely used in construction are also included. This is intended to encourage the use of eco-friendly products in the global construction market. 2-3. Electricity Imports Imported electricity that fails to meet carbon emission standards will also be taxed. This is expected to increase the share of clean energy in the EU's energy imports. 3. International Reactions 3-1. Criticis...