The EU is introducing a carbon border adjustment mechanism, a new tax targeting high-emission imports.
It mainly affects Chinese and Indian exports such as aluminium, cement, fertilisers and steel.
European leaders say the measure will cut pollution and push exporters to invest in cleaner technology.
It also aims to stop EU companies relocating to lower-cost countries and ensure fair competition.
The policy sends a message to major economies to meet EU environmental standards or risk market access.
However, it may raise prices for European consumers on goods like appliances and car parts.
Al Jazeera’s Hashem Ahelbarra reports from Brussels.
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