The Carbon Border Adjustment Mechanism (CBAM) is a central component of the European Union's (EU) "Fit for 55" package. This mechanism is intended to ensure that the reduction of greenhouse gas emissions in the EU – the goal is a reduction of at least 55% by 2030 compared to 1990 – is not undermined by the relocation of emissions abroad. CBAM complements the existing EU Emissions Trading System (EU ETS) and aims to reduce the risk of carbon leakage.

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How Does CBAM Work?

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CBAM is based on a simple principle: companies that wish to import certain goods from non-EU countries into the EU must purchase so-called carbon certificates. These certificates correspond to the amount of emissions generated during the production of the imported goods. This applies a comparable emission price to imported goods as to products produced within the EU, thereby creating a level playing field.

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Which Companies and Goods Are Affected?

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Companies in the EU that import goods such as iron, steel, cement, aluminum, electricity, fertilizers, or hydrogen from non-EU countries are subject to CBAM regulations. Certain upstream and downstream products, particularly from the iron and steel industry, are also affected. During the current transition phase, the EU also plans to evaluate whether additional product groups should be included.

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Do Your Goods Fall Under CBAM?

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Whether your products are affected by the CBAM regulation can be determined using the CN codes of the imported goods. Our Excel tool "Carbon Border Adjustment Mechanism (CBAM): Affected Product Categories" provides a complete overview of the affected product groups and associated CN codes. This table also indicates for which goods both direct and indirect emissions must be considered.

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All companies in the EU that import iron, steel, cement, aluminum, electricity, fertilizers, hydrogen, certain precursors, as well as some upstream and downstream products (particularly iron and steel) – in pure or processed form – from non-EU countries fall under CBAM regulations. During the transition phase, the EU plans to examine whether the scope should be extended to other goods where there is also a risk of carbon leakage.

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If you want to find out whether you fall under the CBAM regulation (based on the CN codes of the goods you import from non-EU countries), download our Excel "Carbon Border Adjustment Mechanism (CBAM): Affected Product Categories." The Excel spreadsheet lists all product types with the associated CN codes that must be considered under the CBAM regulation. You can also see for which goods only direct emissions and for which goods indirect emissions must also be considered.

Find out now whether you fall under the CBAM regulation (based on the CN codes of the goods you import from non-EU countries). Our Excel spreadsheet lists all product types with the associated CN codes that must be considered under the CBAM regulation. You can also see for which goods only direct emissions and for which goods indirect emissions must also be considered. ‍