CBAM Regulation: EU Carbon Tax on Imported Goods

CARBON TAX ON GOODS IMPORTED INTO THE EUROPEAN SINGLE MARKET

The Carbon Border Adjustment Mechanism (CBAM) is an EU instrument designed to put a fair price on the carbon emitted during the production of carbon-intensive goods entering the EU and to encourage cleaner industrial production in non-EU countries. The gradual introduction of CBAM is aligned with the phased withdrawal of free allowances under the EU Emissions Trading System (ETS) to support the decarbonization of EU industry.

How is the CBAM Regulation structured?

The CBAM Regulation officially entered into force on 17 May 2023, the day following its publication in the Official Journal of the European Union on 16 May 2023.
CBAM itself entered into force in its transitional phase on 1 October 2023, which will last until 31 December 2025, with the first reporting period for importers ending on 31 January 2024.

From 1 January 2026, the permanent phase is in force, including the obligation for third-party verification. CBAM initially applies to imports of selected goods and precursors whose production is carbon-intensive and at the highest risk of carbon leakage: cement, iron and steel, aluminium, fertilizers, electricity, and hydrogen.

Contact us

How does Bureau Veritas support organizations with CBAM compliance? 

Bureau Veritas provides the following services to support companies in developing and implementing a CBAM strategy:

  • Voluntary pre-verification in preparation for the mandatory verification required under the permanent system;
  • Gap analysis activities to assess shortcomings in CBAM implementation, from both administrative and technical perspectives, throughout the transitional phase;
  • Second-party audits across the entire value chain to verify GHG emissions inventories, calculations, and reporting procedures;
  • Training programs.

FAQ - Frequently Asked Questions about the CBAM Regulation

  • Which sectors are affected by CBAM?

    Sectors covered by the CBAM Regulation include importers of cement, iron and steel, aluminium, fertilizers, electricity, and hydrogen.

  • CBAM Regulation: What is the role of accredited bodies?

    Currently, no accreditation by the Italian national accreditation body ACCREDIA is in force.