What exactly is CBAM—and why should business leaders care now? The EU’s Carbon Border Adjustment Mechanism (CBAM) has moved from concept to reality, reshaping how carbon costs travel across borders. Since October 2023, the transitional phase requires importers of carbon-intensive goods—steel, cement, aluminium, fertilisers, electricity, and hydrogen—to report embedded emissions. Financial obligations begin in 2026. In simple terms, CBAM levels the playing field between EU pro

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