Regulations:Carbon Border Adjustment Mechanism (CBAM)
Description
CBAM is an EU regulation designed to prevent carbon leakage. This is done by placing a carbon price on imports of certain goods, ensuring that imported products face the same carbon costs as those produced within the EU. Carbon costs are aligned with those faced by EU producers under the EU Emissions Trading Scheme (ETS).
Who must comply
The following must comply if they exceed 50 tonnes mass of goods in emissions intensive industries listed below:
- EU importers
- Non-EU producers will need to provide emissions data to their EU-based customers
- Customs Representatives, importers can appoint an authorised CBAM declarant to handle compliance
Emissions intensive industries:
- Iron and Steel
- Aluminium
- Cement
- Fertilisers
- Hydrogen
- Electricity
How to comply
- Understand if your organization is legally required to comply.
- Check eligibility for free carbon allowances and prepare for phased reductions.
- Submit CBAM report.
- Integrate net zero strategies into your operations.
By when must you comply
From 2027, importers will need to purchase certificates foes goods imported in 2026.
Key Resource
Related legislation
- EU Omnibus
- EU Emissions Trading Scheme
- EU Taxonomy
Page contributors
Layla Atassi, Planet Mark