Carbon Border Adjustment Mechanism

This European Commission document answers various questions about the Carbon Border Adjustment Mechanism (CBAM). Thus it informs that EU importers will buy carbon certificates corresponding to the carbon price that would have been paid if the products had been produced according to the EU rules on carbon prices. Where a non-EU producer can demonstrate that they have already paid for the carbon used in the production of the goods in a third country, the corresponding cost can be fully deducted for the EU importer. The system will be introduced gradually and will initially apply only to products: iron and steel, cement, fertilizer generation, aluminum and electricity. Importers will start paying a financial adjustment in 2026.