26 January 2024 — Publication

Carbon Border Adjustment Mechanism (CBAM)

Combatting carbon leakage in the EU

Carbon Border Adjustment Mechanism (CBAM)

The Carbon Border Adjustment Mechanism (CBAM) is now enforced in the European Union (EU). The new law introduces an import tax on goods such as steel, cement and fertilizers. The legislation is designed to strengthen the EU Emissions Trading System, prevent carbon leakage and ultimately contribute to EU competitiveness.

The Regulation is complex and will heavily impact many businesses, importers, manufacturers, including SMEs. Accountants should be aware of the impacts on their clients and advise them in the CBAM planning and declarations.

This factsheet aims to support accountants and provides an overview of the CBAM’s main provisions.