Carbon Border Adjustment Mechanism (CBAM)

The Carbon Border Adjustment Mechanism (CBAM) is a landmark EU regulation designed to put a fair price on the carbon emitted during the production of carbon-intensive goods that are imported into the EU. It aims to prevent carbon leakage and encourage cleaner industrial production in non-EU countries. CBAM entered a transitional phase on October 1, 2023, with reporting obligations, and will become fully operational from January 1, 2026, requiring importers to purchase CBAM certificates. The first declaration and surrender deadline for embedded emissions in 2026 imports is September 30, 2027.

Record

• Jurisdiction European Union
• Category Industrial, Trade and Supply-Chain Policy
• Legal stage announced
• Binding status binding_eu_law
• Effective date 2026-01-01
• Source European Commission - Taxation and Customs Union