EU has carbon tax internally and they are rolling out CBAM to prevent "carbon exports" (manufacturing stuff outside EU and then importing those product without tax). CBAM is currently used directly some high-emission sectors: iron and steel, aluminum, fertilizers, cement, electricity, and hydrogen.
EU importers require granular data on the embedded emissions (both direct and indirect). US companies in these supply chains have had to overhaul how they track and verify carbon intensity down to the sub-supplier level to help their EU buyers comply with strict European reporting standards.
EU will gradually expand CBAM after allowing supply chains to adjust.