Adopted as part of the European Union’s Fit-for-55 package, the Carbon Border Adjustment Mechanism (CBAM) was conceived as a climate instrument designed to address carbon leakage while reinforcing the EU’s domestic decarbonisation trajectory. Since its adoption, however, CBAM has increasingly been subject to political, legal, and geopolitical pressures that risk diluting its original climate rationale. This blog examines the most recent revisions to the mechanism—introduced in December 2025, shortly before its full entry into force—and assesses their consistency with the EU’s stated climate objectives.