Carbon Border Adjustment Mechanism

Regulation (EU) 2023/956

EU carbon-pricing mechanism that levies importers based on the embedded carbon emissions of in-scope goods. Definitive period begins January 2026; transitional reporting has run since October 2023. Primarily affects industrial commodities but with downstream effects on fertiliser-intensive agricultural supply chains.

Jurisdiction

European Union

Enforcement

2026-01-01

Scope

Cement, iron and steel, aluminium, fertilisers, electricity, hydrogen

Source CBAM-compliant suppliers

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