The EU’s fight against carbon has finally gone global following the launch of a trial period for a new carbon border tax on goods manufactured by trading partners around the world.

The Carbon Border Adjustment Mechanism (the CBAM) was adopted last year with the aim of ensuring that goods made in the EU – where they are subject to the EU’s Emissions Trading System, which sets a price on carbon emitted – will be able to compete fairly with products made in countries where carbon isn’t taxed.

Launched on October 1, the trial period requires all EU trading partners to report the greenhouse gas emissions tied to their exports of iron, steel, cement, aluminium, fertilizer, hydrogen, and electricity.

In this initial phase, companies are required just to report the emissions on their products and face fines should they fail to do so. CBAM payments do not come into effect until 2026.

The initiative aims to nudge other countries towards setting their own carbon tax while shielding EU companies from unfair competition.

“CBAM will encourage industry worldwide to embrace greener technologies,” EU Commissioner Paolo Gentiloni said in a statement. “It will also prevent so-called carbon leakage, or the relocation of production outside our borders to countries with lower environmental standards.”

The launch of the trial is, the EU says, a key part of its project to cut greenhouse gas emissions by 55% by the end of the decade and to become climate neutral by 2050. It has not, however, been well-received by trading partners around the world.

According to Politico, Brazil, South Africa, and India have all accused the EU measure of being ‘discriminatory’, while China has called on the World Trade Organisation to assess the measure. Australia has attacked the planned carbon border levy for ‘harming global growth’, while the US is currently seeking an exemption.