CBAM Regulation: Carbon Border Carbon Tax for Imported Products

CARBON PRICING FOR GOODS ENTERING THE EUROPEAN SINGLE MARKET

The Carbon Border Adjustment Mechanism (CBAM) is a European Union measure aimed at assigning an appropriate carbon cost to the emissions generated during the manufacture of carbon-intensive products imported into the EU. At the same time, it promotes cleaner industrial practices in countries outside the Union. The progressive implementation of CBAM complements the gradual phase-out of free allowances under the EU Emissions Trading System (ETS), supporting the transition toward a lower-carbon European industrial sector.

How does the CBAM Regulation work?

The CBAM Regulation became legally effective on 17 May 2023, following its publication in the Official Journal of the European Union on 16 May 2023. The transitional period began on 1 October 2023 and will remain in place until 31 December 2025. The first reporting deadline for importers was set for 31 January 2024.

Since 1 January 2026, the permanent CBAM system has applied, introducing mandatory third-party verification requirements. In its initial scope, CBAM covers imports of specific goods and precursor materials that are particularly carbon-intensive and exposed to a high risk of carbon leakage, including cement, iron and steel, aluminium, fertilizers, electricity, and hydrogen.

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How can Bureau Veritas support your CBAM journey?

To help organizations establish and implement an effective CBAM approach, Bureau Veritas offers:

  • Optional pre-verification services to help companies prepare for the mandatory verification requirements of the permanent CBAM framework;
  • Gap assessment activities designed to identify administrative and technical areas requiring improvement during the transitional phase;
  • Second-party audits throughout the value chain to review GHG emissions inventories, calculation methodologies, and reporting processes;
  • Dedicated training programmes.

FAQ – Frequently Asked Questions about CBAM

  • Which industries are covered by CBAM?

    The CBAM framework applies to importers of cement, iron and steel, aluminium, fertilizers, electricity, and hydrogen.

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

    At present, there is no active accreditation scheme issued by ACCREDIA, the Italian national accreditation body, for this purpose.