The European Parliament has approved an expansion of the carbon border tax, known as the Carbon Border Adjustment Mechanism (CBAM), to cover more industrial products. This measure is intended to level the playing field for European companies by addressing unfair competition from countries with less strict environmental regulations. The CBAM, which will take effect in 2026, charges companies importing certain materials a carbon price similar to what European producers already pay. It targets products from industries known for high carbon emissions, such as steel, aluminum, cement, fertilizers, electricity, and hydrogen. The regulation now includes certain finished metal products, like washing machines and automotive components, to prevent companies from importing these goods to avoid the carbon tax. The European Parliament approved the proposal with 464 votes in favor, 50 against, and 159 abstentions. Far-right groups were largely divided, with most members either abstaining or voting against the proposal. Other political groups, ranging from conservatives to the radical left, mostly supported the text. Now, the next step is to negotiate the final details with the 27 member states of the European Union. Mohammed Chahim, the Dutch social democrat who led the proposal, stated that companies outside Europe will need to either reduce their carbon emissions or pay for them, just as European companies already do. The Parliament went beyond the original proposal by the European Commission, extending the list of products subject to the CBAM. Notably, the tax on fertilizers will not be suspended, even when prices are high, which has caused concern among agricultural unions. However, the Parliament did support an exemption for certain imports into European overseas territories, a move welcomed by the French government and several French legislators. Pierre Leturcq from the Institute for European Environmental Policy (IEEP), a Brussels-based think tank, noted that the primary goal of the regulation appears to be protecting European industry rather than solely addressing climate change. He warned that the expansion could lead to dissatisfaction among Europe’s trading partners. Meanwhile, French Minister for Overseas Territories, Naïma Moutchou, emphasized the importance of securing the exemption for overseas territories in the final negotiations with other EU member states.