EU CBAM is created to ensure that companies operating within the EU and companies that import goods into the EU face similar carbon costs and incentives for reducing emissions. Disclosure of GHG emissions would be used to calculate the carbon border adjustment (tax) and determine the additional cost a company will have to pay to import goods into the EU.

  • The CBAM will apply to any company that imports carbon-intensive goods into the EU, regardless of location, origin, or company size.
  • The CBAM will initially apply to imports of certain goods and selected precursors whose production is carbon intensive and at most significant risk of carbon leakage: cement, iron and steel, aluminium, fertilisers, electricity and hydrogen.

CBAM Standards and Compliance Timeline

The CBAM will enter into force in its transitional phase as of October 1, 2023, with the first reporting period for importers ending January 31, 2024. The set of rules and requirements for the reporting of emissions under CBAM will be further specified in an implementing act to be adopted by the Commission after consulting the CBAM Committee, made up of experts from EU Member States. The permanent system enters into force on January 1, 2026.

GHG emissions associated with the product, including its production and transportation. Businesses are required to report on a quarterly basis, the embedded emissions in the imported goods (during that quarter of a calendar year). As part of their reports, businesses must detail both the direct and indirect emissions, as well as any carbon price effectively paid in the country of origin.

To whom and how to report:

CBAM Authority