After nearly two years of multi-party negotiations, the Carbon Boundary Adjustment Mechanism (CBAM) finally completed its legislative process in May. Based on the political agreement, the CBAM will enter into force in its transitional phase on 1 October 2023; the obligation to purchase CBAM certificates will come into effect on January 1, 2026. The impact of carbon tariffs on other countries and regions, including China, is enormous. In fact, CBAM has always been at the center of global attention throughout the legislative process, and there are many controversies about its mechanism. (YU HAISHAN)