Canadian Minister Stops Short of Endorsing EU Carbon Tax as Energy Alliance Deepens

Canadian Climate and Environment Minister Julia Dabrusin defended industrial carbon pricing but stopped short of endorsing the European Union’s Carbon Border Adjustment Mechanism, or CBAM. The levy, which took effect in January 2026, applies carbon costs to certain imports. Dabrusin said Canada and the EU still need to discuss the issue. Ottawa is seeking ways to reduce the measure’s administrative burden for Canadian exporters and have its domestic carbon-pricing system recognized. The disagreement could complicate closer trade ties, even as both sides deepen cooperation on energy and other priorities.