EU CBAM

mechanism, CN codes, green-house gases, emission types
EU CBAM
(Carbon Boarder Adjustment Mechanism)
mechanism, CN codes, green-house gases, emission types
Spotlight!
Use of default values must not exceed 20% in final reported emissions starting from Q3 of 2024!
What do you do, if your suppliers do not provide you with emission data? We know the way out.
Get in touch with us!
Mechanism
  • CBAM is meant to stop carbon leakage
    The displacement of carbon-intensive EU manufacturing to regions with less stringent environmental regulations could undermine global efforts to combat climate change.
  • CBAM will be introduced in two stages: a transitional period and a definitive period
    The transitional period acts as a testing ground and educational phase for all stakeholders (importers, producers, and authorities) to collect essential information on embedded emissions and optimize the methodology for the permanent implementation
  • Eliminate disparity between prices paid for CO2 emissions in EU and non-EU territories
    Promote the adoption of cleaner industrial practices in non-EU countries. Implement measures to align the carbon footprint of imported goods with that of domestic production and uphold the EU's ambitious climate goals.
  • Transitional period (2024-2026): no payments, obligations to report emissions
    In this preparatory period, importers of goods subject to the new rules will solely need to report the embedded greenhouse gas emissions (GHG) in their imported goods, comprising direct and indirect emissions, without undertaking financial payments or making any adjustments to their practices
  • CBAM initially to cover six high-emitting industries with the potential to expand in the future
    The initial implementation of the CBAM will encompass imports of certain product categories and critical inputs characterized by high carbon emissions and substantial carbon leakage risks:
    1. Cement
    2. Iron and steel
    3. Aluminium
    4. Fertilisers
    5. Electricity
    6. Hydrogen
  • Definitive period (from 2026): gradual introduction of payments
    Importers will be required to relinquish CBAM certificates upon the completion of their imports. The cost of CBAM certificates will be determined by the weekly average auction price of EU ETS allowances, expressed in €/tonne of CO2 emitted. The process of phasing out free allocation under the EU ETS will coincide with the implementation of CBAM, spanning the years 2026 to 2034.
Key questions
  • Importers or their representatives are required to submit reports on the import of CBAM goods to the Commission each quarter
CBAM Goods
Responsibility of identifying whether imported items are subject to CBAM regulation lies with importers.

CBAM regulation lists sectors and aggregated goods categories as illustrated below. Each aggregated good category contains subsequent CN codes.

Which of my imported goods fall under CBAM regulation?

If you find your imported items in the file provided below, your items are subject to CBAM regulation and their respective emissions must be reported.

CN codes subject to CBAM can be downloaded in XLS format here

Greenhouse gases
CBAM regulates emissions of tree groups of greenhouse gases: carbon dioxide (CO2), nitrous oxide
(N2O), and perfluorocarbons (PFCs). Production of fertilisers under the CN codes of 2814 "Ammonia, anhydrous or in aqueous solution" need to report only CO2.
Emissions
Direct emissions are the emissions arising from the production process of goods to which the CBAM regulation applies.

Indirect emissions are the emissions arising from the generation of electricity used to produce the goods to which the CBAM regulation applies.
Key documents
Unclear about application of CBAM rules? Have additional questions?
Get in touch with us today: fill-in a contact request form or send us an email!
This section is updated regularly. Please come back soon.