CBAM

What is the Carbon Border Adjustment Mechanism (CBAM)?

The CBAM is a new mechanism introduced by the European Union to ensure fair competition and contribute to the reduction of CO₂ emissions. This system focuses on taxing imported goods from sectors with high CO₂ emissions, such as steel, aluminium, cement, electricity and fertilisers. Read here further specify which goods are specifically involved.

With CBAM, products are taxed based on the CO₂ emissions released during their production. Importers must purchase CO₂ certificates that reflect the carbon price that applies within the EU. This ensures that foreign products compete with the same environmental standards as European products.

What does this mean for your business?

The CBAM has consequences for companies that import raw materials or products from countries outside the EU. From 2023, a transition period has started in which companies must submit reports on the CO₂ emissions of their imported goods. The financial obligations will come into force from 2026.

What should companies do?

To be prepared for CBAM, companies should take the following steps:

1. Rate your current chain: Map which imported goods fall under CBAM and how much CO₂ emissions are associated with these products.
2. Reporting obligation: From 2023, importers will have to report CO₂ emission data. Make sure you collect and report the correct data according to EU rules.
3. Prepare for the certification requirement: From 2026, you will be required to purchase CBAM certificates. Start planning now to minimize costs and impact.
4. Stay informed about regulations: CBAM implementation is subject to change. Follow updates from the European Union and relevant authorities such as Customs.

More information?

Want to know how CBAM impacts your organization and what you can do to be prepared? Visit the Tax Authorities page about CBAM.