CBAM
CBAM
Carbon Border Adjustment Mechanism
What is CBAM?
The Carbon Border Adjustment Mechanism (CBAM) is part of the European Union’s ‘Fit for 55’ package and aims to protect emission reductions and combat carbon leakage by requiring companies to purchase allowances for emissions generated during production outside the EU, similar to the EU Emission Trading System (ETS), in order to be allowed to import.
Which companies are affected by CBAM?
CBAM affects key sectors of European industry such as:
Iron, steel, cement, aluminum, electricity, fertilizers, and hydrogen.
Companies importing these goods from non-EU countries must follow CBAM guidelines. The EU parliament is considering extending the scope of application to other goods (polymers, chemicals).
Which dates are important for affected companies?
CBAM is effective from 1 October 2023, does not require any certificates during the transition phase from October 2023 to the end of 2025, but requires the calculation and documentation of emissions. From 2026, additional certificates will be required for imports.
