The EU Carbon Tariff is about to take effect, will TREE usher in a period of policy dividends? @Treehouse Official

With the EU Carbon Border Adjustment Mechanism (CBAM) set to be fully implemented in 2026, #Treehouse ($TREE ) as an innovative project in the blockchain carbon verification field is expected to welcome growth opportunities driven by policy. Here are the key analyses:

1. Surge in Compliance Demand

CBAM requires that the carbon emissions over the entire lifecycle of products such as steel, aluminum, and cement imported to the EU be accounted for, and that a carbon price difference be paid. TREE's on-chain carbon verification technology (such as zero-knowledge proofs) can help companies make carbon emission data transparent, meeting EU compliance requirements. For example, its collaboration with CATL on sulfide solid-state battery materials has passed carbon footprint certification and can be directly used to offset CBAM costs.

2. Acceleration of Carbon Asset Financialization

TREE converts environmentally friendly actions into tradable on-chain assets through tokenized carbon credits (such as tETH) and the DOR interest rate mechanism. The combination of the EU carbon price (currently around 72 euros/ton) and TREE's destruction model may attract companies to stake TREE to obtain carbon credits to hedge against carbon tariff costs.

3. Ecological Collaboration and Market Expansion

The project has established a presence in the European market (such as a base in Poland) and is collaborating with Huawei Digital Energy to develop low-carbon technologies. If the EU expands the coverage of CBAM (such as to chemicals and plastics), TREE's cross-chain compatibility can quickly adapt to new industry demands, further opening up growth space.

Risk Warning: Attention should be paid to changes in the EU carbon accounting rules and the competitive pressure from traditional carbon credit projects. However, overall, the implementation of CBAM may promote TREE to become a key node in green financial infrastructure.