What is CBAM?

The Carbon Border Adjustment Mechanism (CBAM) is the European Union’s tool for putting a fair price on the carbon emitted during the production of carbon-intensive goods entering the EU.

Its purpose is to encourage cleaner, more sustainable industrial production in non-EU countries and to curb carbon leakage. The EU adopted the CBAM Regulation on 16 May 2023.

The full definitive regime is walked through in the CBAM Compliance Guide.