“what makes this fee revolutionary is that it will apply to emissions that don’t happen on European soil. The EU already puts a price on many of the emissions created by European firms; now, through the new Carbon Border Adjustment Mechanism, or CBAM, the bloc will charge companies that import the targeted products — cement, aluminum, electricity, fertilizer, hydrogen, iron and steel — into the EU, no matter where in the world those products are made.”
https://knowablemagazine.org/content/article/food-environment/2024/big-boost-europe-carbon-neutral-goals-cbam
This removes incentives to move carbon-intensive industry out of the EU, since that won’t sidestep tariffs any longer. The tariff accounting includes the electricity used for production, so there’s an incentive for business exporting to the EU to use green energy