EU Carbon Border Adjustment Mechanism (CBAM)
The EU Carbon Border Adjustment Mechanism (CBAM) is an EU import-side carbon-pricing instrument designed to address carbon leakage and to mirror, at the border, the carbon cost faced by EU producers under the EU Emissions Trading System (EU ETS). Regulation (EU) 2023/956 applies to imports of cement, iron and steel, aluminium, fertilisers, electricity and hydrogen (Annex I), with downstream products added by 2025 amending acts. The CBAM has a transitional phase from 1 October 2023 until 31 December 2025 (quarterly reporting only) and a definitive phase from 1 January 2026 (financial obligation: authorised CBAM declarants must surrender CBAM certificates corresponding to the embedded emissions in the imported goods, at a price linked to the EU ETS allowance auction price). Operation: importers must obtain authorised CBAM declarant status (Art.4-5), file annual CBAM declarations covering embedded emissions (Art.6), verify embedded emissions through accredited verifiers (Art.8), and may deduct carbon prices paid in the country of origin (Art.9). Certificates are sold by Member States (Art.20), surrendered annually (Art.22, with minimum 80% holding rule), with limited repurchase (Art.23) and annual cancellation (Art.24). Enforcement: penalties for unsurrendered certificates (Art.26) and anti-circumvention (Art.27).
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Framework Domains (7)
CBAM - CBAM Certificates (Ch IV)
| Code | Title |
|---|---|
| CBAM-Art.20_21 | Sale and price of CBAM certificates (Articles 20 and 21) |
| CBAM-Art.22 | Surrender of CBAM certificates and minimum 80% holding rule (Article 22) |
| CBAM-Art.23_24 | Repurchase and cancellation of CBAM certificates (Articles 23 and 24) |
CBAM - Competent Authorities and CBAM Registry (Ch III)
| Code | Title |
|---|---|
| CBAM-Art.11_12_13 | Competent authorities, Commission tasks and professional secrecy (Articles 11, 12, 13) |
| CBAM-Art.14_16 | CBAM registry and accounts (Articles 14 and 16) |
| CBAM-Art.15 | Risk analysis by competent authorities and the Commission (Article 15) |
| CBAM-Art.17 | Authorisation criteria and conditions (Article 17) |
| CBAM-Art.18_19 | Accreditation of verifiers and review of declarations (Articles 18 and 19) |
CBAM - Coordination with EU ETS and Reporting (Ch VIII-IX)
| Code | Title |
|---|---|
| CBAM-Art.30_31 | Review, reporting and coordination with EU ETS (Articles 30 and 31) |
CBAM - Importation Rules and Enforcement (Ch V-VI)
| Code | Title |
|---|---|
| CBAM-Art.25 | Rules applicable to the importation of goods (Article 25) |
| CBAM-Art.26 | Penalties for non-surrender (Article 26) |
| CBAM-Art.27 | Circumvention monitoring (Article 27) |
CBAM - Obligations of Authorised CBAM Declarants (Ch II)
| Code | Title |
|---|---|
| CBAM-Art.10 | Registration of operators and installations in third countries (Article 10) |
| CBAM-Art.4 | Importation of Annex I goods only by authorised CBAM declarants (Article 4) |
| CBAM-Art.5 | Application for authorisation (Article 5) |
| CBAM-Art.6 | Annual CBAM declaration (Article 6) |
| CBAM-Art.7 | Calculation of embedded emissions (Article 7) |
| CBAM-Art.8 | Verification of embedded emissions (Article 8) |
| CBAM-Art.9 | Carbon price paid in the country of origin (Article 9) |
CBAM - Subject Matter, Scope and Definitions (Ch I)
| Code | Title |
|---|---|
| CBAM-Art.1 | Subject matter and Annex I goods (Article 1) |
| CBAM-Art.2 | Scope of covered goods (Article 2) |
| CBAM-Art.3 | Definitions (Article 3) |
CBAM - Transitional and Final Provisions (Ch X-XI)
| Code | Title |
|---|---|
| CBAM-Art.32_33_34_35 | Transitional phase (Articles 32-35) |
| CBAM-Art.36 | Entry into force and application (Article 36) |
Maps to 1 other framework
Frequently Asked Questions
What is EU Carbon Border Adjustment Mechanism (CBAM)?
EU Carbon Border Adjustment Mechanism (CBAM) is a compliance framework from European Union with 7 domains and 24 controls. The EU Carbon Border Adjustment Mechanism (CBAM) is an EU import-side carbon-pricing instrument designed to address carbon leakage and to mirror, at the border, the carbon cost faced by EU producers under the EU Emissions Trading System (EU ETS). Regulation (EU) 2023/956 applies to imports of cement, iron and steel, aluminium, fertilisers, electricity and hydrogen (Annex I), with downstream products added by 2025 amending acts. The CBAM has a transitional phase from 1 October 2023 until 31 December 2025 (quarterly reporting only) and a definitive phase from 1 January 2026 (financial obligation: authorised CBAM declarants must surrender CBAM certificates corresponding to the embedded emissions in the imported goods, at a price linked to the EU ETS allowance auction price). Operation: importers must obtain authorised CBAM declarant status (Art.4-5), file annual CBAM declarations covering embedded emissions (Art.6), verify embedded emissions through accredited verifiers (Art.8), and may deduct carbon prices paid in the country of origin (Art.9). Certificates are sold by Member States (Art.20), surrendered annually (Art.22, with minimum 80% holding rule), with limited repurchase (Art.23) and annual cancellation (Art.24). Enforcement: penalties for unsurrendered certificates (Art.26) and anti-circumvention (Art.27). It is used by organisations to establish and maintain compliance with industry standards and regulatory requirements.
How many controls does EU Carbon Border Adjustment Mechanism (CBAM) have?
EU Carbon Border Adjustment Mechanism (CBAM) has 24 controls organised across 7 domains. The largest domains are CBAM - Obligations of Authorised CBAM Declarants (Ch II) (7 controls), CBAM - Competent Authorities and CBAM Registry (Ch III) (5 controls), CBAM - CBAM Certificates (Ch IV) (3 controls). Each control defines specific requirements that organisations must implement to achieve compliance.
What frameworks does EU Carbon Border Adjustment Mechanism (CBAM) map to?
EU Carbon Border Adjustment Mechanism (CBAM) maps to 1 other compliance frameworks. The top mapping partners are CSRD (17% coverage). Use our comparison tool to explore control-level mappings between frameworks.
How do I get started with EU Carbon Border Adjustment Mechanism (CBAM) compliance?
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