Environment

The world’s first carbon border tax will soon go live — shaking up global trade

Published

3 weeks ago

September 30, 2025

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A worker walks past molten steel at a steel factory in Huai’an, in China’s eastern Jiangsu province on July 22, 2025.

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The European Union is less than three months away from launching its carbon levy — the world’s first large-scale border tax on carbon-intensive goods.

The forthcoming step, which has the potential to completely transform global trade, comes as part of the bloc’s efforts to slash greenhouse gas emissions from heavy industries and promote cleaner production processes across the globe.

Starting from Jan. 1 next year, the EU’s Carbon Border Adjustment Mechanism (CBAM) will impose a cost on goods such as steel, fertilizers, cement, aluminum and hydrogen imported from outside the 27-nation bloc.

Under the terms of the policy, importers bringing these goods into the EU will be required to purchase CBAM certificates to cover their associated emissions. The cost of these certificates is expected to be the same as the EU Emissions Trading System (ETS) market price.

Vocal opposition

Not everyone is thrilled about the EU’s upcoming carbon border tax. The U.S., China, India and Brazil are among the countries that have raised concerns, with some threatening to take retaliatory measures and others warning the policy might hinder rather than help global climate efforts.

The European Commission, the EU’s executive arm, did not respond to a request for comment when contacted by CNBC.

An aerial view of the Belchatow Power Station, Europe’s largest coal-fired power station near Belchatow, Poland on August 22, 2025. It is Poland’s largest power station with an installed capacity of 5,1 MW. The power plant is one of the candidates to be reconstructed as a future nuclear power site.

Nurphoto | Nurphoto | Getty Images

Nicolas Endress, founder and CEO of ClimEase, a CBAM software solutions company, said the EU’s integrated carbon tax and tariff scheme will reshape global trade in ways most businesses haven’t yet grasped. Steel, cement, fertilizers and aluminum-related sectors are set to be first in the firing line.

It’s “no surprise” that the likes of the U.S., Brazil and India have raised concerns about the policy, Endress said, noting that countries without an emissions trading system (ETS) will be exposed to the border tax.

The EU says the CBAM is designed to put a “fair price” on carbon emitted during the production of emissions-intensive goods.

The tax is also designed to prevent what’s known as “carbon leakage,” which is when companies move production abroad to countries where less stringent climate polices are in place.

A test of climate leadership

The U.S., for its part, has warned that European climate rules could threaten the EU’s trade deal with the White House.

U.S. President Donald Trump struck a framework agreement with European Commission President Ursula von der Leyen in late July, establishing a tariff ceiling of 15% for most EU goods from the start of August.

This rate was significantly lower than the 30% previously threatened by the U.S. president, but above the 10% baseline the EU had been hoping for.

Speaking to the Financial Times last month, U.S. Energy Secretary Chris Wright said that, in the absence of significant modifications, the EU’s CBAM — among other green regulatory policies — would create “huge legal risks” for U.S. companies selling fossil fuels into Europe.

Other countries exposed to the EU’s CBAM have criticized the plans, too. India has reportedly said it will retaliate against the carbon border taxes, saying high-income countries that are historically responsible for the climate crisis should do more to slash greenhouse gas emissions.

China, Brazil and Russia, meanwhile, have all raised concerns about the EU’s carbon border taxes, both at U.N. climate negotiations and with the World Trade Organization.

European Commission President Ursula von der Leyen and NATO Secretary General Mark Rutte hold a joint press statement in Brussels, Belgium on September 30, 2025.

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The EU’s von der Leyen, in a 2019 manifesto to become European Commission president, said she intended to introduce a carbon border tax “to avoid carbon leakage” and help EU companies “compete on a level playing field.”

The policy was later introduced as part of the bloc’s effort to reduce emissions by at least 55% by the end of the decade.

Alex Mengden, policy analyst at Tax Foundation Europe, said EU officials have typically sought to downplay the potential for any retaliatory steps from major economies when the final stage of CBAM kicks in.

“It might show that we can only take so much climate leadership because it has real costs on us and if we are not in a global coalition, those costs fall back on ourselves instead of our trading partners, which is essentially the goal,” Mengden told CNBC by video call.

“Now, of course, it might still succeed,” Mengden said. “The success case for policymakers that devise the CBAM policy would be other countries adopting their own ETS systems,” he added.

Not just ‘a European experiment’

For some, the EU’s CBAM marks the first step of what is expected to become a global initiative to tackle the climate crisis.

“Within the next few years, carbon pricing won’t just be a European experiment — it will likely cover as much as 80% of global trade,” ClimEase’s Endress said.

“CBAM is what is making this happen by likely penalising countries without sturdy systems and rewarding those with EU-aligned ETS frameworks,” he added. “Countries that evolve with the change and build credible carbon pricing will defend their industries, while those that pull away will watch their exporters ultimately face the consequences.”

Environment

As Texas power demand surges, solar, wind and storage carry the load

Published

6 hours ago

October 24, 2025

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As Texas power demand surges, solar, wind and storage carry the load

Texas solar battery storage — Photo: Avangrid

Electricity demand is surging in Texas, and solar, wind, and battery storage are meeting it.

According to new data from the US Energy Information Administration (EIA), electricity demand across the Texas grid managed by the Electric Reliability Council of Texas (ERCOT) hit record highs in the first nine months of 2025. ERCOT, which supplies power to about 90% of the state, saw demand jump 5% year-over-year to 372 terawatt hours (TWh) – a 23% increase since 2021. No other major US grid has grown faster over the past year.

Solar and wind keep ERCOT’s grid steady

The biggest growth story in Texas power generation is solar. Utility-scale solar plants produced 45 TWh from January through September, up 50% from 2024 and nearly four times what they generated in 2021 (11 TWh). Wind power also continued to climb, producing 87 TWh through September – a 4% increase from last year and 36% more than in 2021.

Together, wind and solar supplied 36% of ERCOT’s total electricity over those nine months. Solar, in particular, has transformed Texas’s daytime energy mix. From June to September, ERCOT solar farms generated an average of 24 gigawatts (GW) between noon and 1 pm – double the midday output from 2023. That growth has pushed down natural gas use at midday from 50% of the mix in 2023 to 37% this year.

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Battery storage is filling in the gaps

Batteries charge during the day when wind and solar generation are the highest, and they produce electricity when generation from wind and solar slows down. ERCOT began reporting battery output separately in October 2024 in its hourly grid data, and it’s clear that batteries are now helping to smooth out evening peaks. This past summer, batteries supplied an average of 4 GW of power around 8 pm, right as solar production dropped off.

Natural gas is flatlining

Natural gas is still Texas’s dominant power source, but it isn’t growing like it used to. Between January and September, gas-fired plants generated 158 TWh of electricity, compared to 161 TWh in 2023. Gas comprised 43% of ERCOT’s generation mix during the first nine months of 2025, down from 47% in the first nine months of 2023 and 2024.

More demand growth ahead

The EIA expects Texas electricity demand to keep rising faster than any other grid in the US. In its latest Short-Term Energy Outlook, the EIA projects ERCOT’s demand will climb another 14% in the first nine months of 2026, reaching 425 TWh. That means Texas will need even more solar, wind, and battery storage to keep up with its breakneck growth.

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Environment

Chevy Equinox EV and another Cadillac electric SUV recalled due to tire defect

Published

8 hours ago

October 24, 2025

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Chevy Equinox EV and another Cadillac electric SUV recalled due to tire defect

GM is recalling nearly 23,000 Chevy Equinox EV and Cadillac Optiq models due to a defect where the tire tread could fall off.

GM is recalling more Chevy Equinox EV models

In a letter sent to the National Highway Traffic Safety Administration (NHTSA), GM said it has decided to issue a safety recall for certain Chevy Equinox EV and Cadillac Optiq models from model years 2025 to 2026.

This time, it isn’t necessarily GM’s fault. The vehicles may be equipped with 21″ all-season tires that Continental Tire is recalling.

According to Continental, the tires were produced during the week of October 6, 2024, and may have a defect where the tire tread could partially or fully detach. The records show the defect is due to a nonconforming tread base rubber compound.

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Owners of affected vehicles may notice unusual tread wear or bulging, vibration while driving, or tire noises. GM is unaware of any incidents related to the defect, but is issuing the recall out of an abundance of caution.

Cadillac-Optiq-EV-recall — Cadillac Optiq EV (Source: Cadillac)

On September 18, 2025, GM inspected the assembly plant and confirmed there were no suspect tires in stock. The 21″ tires come standard on RS trims and are optional on LT1 and LT2 grades.

Although GM is recalling 22,914 Chevy Equinox EVs and Cadillac Optiqs, it estimates that only about 1% of them have the defect.

The recall includes:

2026 Cadillac Optiq: 214
2026 Chevy Equinox EV: 1,832
2025 Cadillac Optiq: 3,468
2025 Chevy Equinox EV: 17,400

GM dealers will check all four tires and replace them if needed, free of charge. Dealers were notified on October 16. Owner notification letters are expected to be mailed out on December 1, 2025.

You can contact Chevrolet’s customer service number at 1-800-222-1020 or Cadillac’s at 1-800-333-4223. GM’s recall number is N252525030. Owners can also call the NHTSA hotline at 1-888-327-4236 or visit the nhtsa.gov website for more information.

The Chevy Equinox EV is now the third best-selling EV in the US, trailing only the Tesla Model Y and Model 3. Meanwhile, Cadillac’s entry-level Optiq SUV is the fifth-most-popular luxury EV. The recall is minor and only affects a small percentage of models, so it’s not expected to have a major impact.

If you want to test one of them for yourself, we can help you get started. Check out our links below to find available Chevy Equinox EV and Cadillac Optiq models near you.

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Environment

Podcast: TSLA earnings madness, Rivian layoffs, Ford pauses F-150 Lightning, more

Published

9 hours ago

October 24, 2025

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Podcast: TSLA earnings madness, Rivian layoffs, Ford pauses F-150 Lightning, more

In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss Tesla’s earnings madness, Rivian layoffs, Ford pausing F-150 Lightning, and more.

The show is live every Friday at 4 p.m. ET on Electrek’s YouTube channel.

As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.

After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:

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We now have a Patreon if you want to help us avoid more ads and invest more in our content. We have some awesome gifts for our Patreons and more coming.

Here are a few of the articles that we will discuss during the podcast:

Here’s the live stream for today’s episode starting at 4:00 p.m. ET (or the video after 5 p.m. ET:

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