Background and Requirements
The EU’s Carbon Border Adjustment Mechanism (CBAM) is a key policy tool designed to put a fair price on the carbon emitted during the production of carbon-intensive goods imported into the EU. By doing so, CBAM aims to encourage cleaner industrial practices in non-EU countries, leveling the playing field for industries both inside and outside the EU.
CBAM will fully come into effect in 2026, following a transitional phase from 2023 to 2025. This phased introduction aligns with the gradual reduction of free allowances under the EU Emissions Trading System (ETS), supporting the decarbonization of EU industries.
Beginning July 31, 2024, during the transitional period, importers of goods covered by the Carbon Border Adjustment Mechanism (CBAM) will be required to report the greenhouse gas (GHG) emissions embedded in their imports to the National Competent Authority (NCA) of their respective Member State
CBAM Actors affected:
- EU Importers
- Indirect Customs Representative
- Non-EU Manufacturers
CBAM-Affected Sectors: Key industries facing 2026 compliance
Cement, iron, steel, aluminum, fertilizers, electricity, and hydrogen.
Sectors Potentially Added by 2030
Other energy incentive industries in EU ETS such as Chemicals, Polymers and Paper & Pulp
REACHLaw Support:
Navigating CBAM can be challenging, but you don’t have to do it alone. REACHLaw’s CBAM Co-Pilot Services ensure your business is fully prepared for the transition and the ongoing obligations related to carbon pricing and cross-border emissions regulations.
Contact us at CASE@reachlaw.fi for support.