CBAM covers six sectors listed in Annex I of Regulation (EU) 2023/956: iron and steel, aluminium, cement, fertilisers, electricity and hydrogen. Cement and fertilisers price both direct and indirect emissions; the other four cover direct emissions only in the definitive regime that began 1 January 2026, except iron ore (CN 2601 12 00), which also counts indirect emissions.
The Carbon Border Adjustment Mechanism (CBAM) applies to six carbon-intensive sectors named in Annex I of Regulation (EU) 2023/956. The definitive period began 1 January 2026, though authorised CBAM declarants do not buy certificates until 1 February 2027 and file the first annual declaration by 30 September 2027. The table below maps each sector to its main Combined Nomenclature (CN) codes and typical products.
Sectors and CN codes covered
| Sector | Key CN heading(s) | Example products |
|---|---|---|
| Iron and steel | CN chapter 72 (except ferro-alloys and scrap), headings 7301 to 7311, 7318 and 7326, iron ore 2601 12 00 | Pig iron, flat and long products, tubes, screws and bolts |
| Aluminium | CN headings 7601, 7603 to 7614 and 7616 | Unwrought aluminium, bars, wire, plates, foil, tubes |
| Cement | CN 2523, calcined kaolinic clays 2507 00 80 | Clinker, white and grey Portland, aluminous cement |
| Fertilisers | CN 2814, 2808, 2834 21, 3102 and 3105 | Ammonia, nitric acid, potassium nitrate, urea |
| Electricity | CN 2716 00 00 (measured in MWh) | Imported grid electricity |
| Hydrogen | CN 2804 10 00 | Imported hydrogen |
Cement and fertilisers price both direct and indirect (electricity) emissions. Aluminium, electricity, hydrogen and iron and steel count direct emissions only, except iron ore (CN 2601 12 00), which also counts indirect emissions.
Who is exempt, and what is not yet covered
A single 50-tonne mass-based de-minimis threshold now exempts importers bringing in 50 tonnes or less of CBAM goods per year. That removes roughly 90% of importers while retaining over 99% of embedded emissions. Electricity and hydrogen imports stay in scope regardless. As of 19 October 2026 the scope remains these six sectors. A proposal of 17 December 2025 would add about 180 steel and aluminium downstream products from 1 January 2028; it has not been adopted. GreenSutra’s consultants map product codes and embedded-emission data through CBAM Solutions, and the CBAM guide explains reporting duties step by step.
Sources: Regulation (EU) 2023/956 on EUR-Lex · Regulation (EU) 2025/2083 on EUR-Lex · CBAM on the European Commission site