The ‘border adjustment mechanism’ aims to create a level playing field while also encouraging decarbonisation

The biggest shake-up of green trade rules for decades comes into force today, as companies selling steel, cement and other high-carbon goods into the EU will have to prove they comply with low-carbon regulations or face fines.

Many countries expected the EU to back down on the “green tariff” rules, in the same way that other environmental regulations have recently been watered down, but the bloc has pressed ahead despite protests from China, the US, Australia and others.