What CBAM is (professional definition) The EU Carbon Border Adjustment Mechanism (CBAM) is a carbon-pricing policy that applies to certain imports into the European Union , intended to reflect the carbon cost that EU producers already face under the EU Emissions Trading System (EU ETS) . Put simply, CBAM requires EU importers (and, indirectly, their non‑EU suppliers) to report embedded greenhouse gas emissions in covered goods and, over time, pay a charge via CBAM certificate