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Carbon Border Adjustment Mechanism (CBAM): its definitive phase begins - and a scope expansion is already on the table

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25 August 2026

Carbon Border Adjustment Mechanism (CBAM): its definitive phase begins - and a scope expansion is already on the table

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The photo presents a container ship transporting cargo across the sea.

As of 1 January 2026, Carbon Border Adjustment Mechanism (CBAM) moved from a reporting-only regime to a definitive phase requiring importers to purchase certificates covering the carbon embedded in imported steel, aluminium, cement, fertilisers, hydrogen and electricity.

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Related Organisation(s)

European Commission - DG TAXUD

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EU-27

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Company with 250 or more employees

EU Institutions

National authorities

SMEs (a company with less than 250 employees)

  • Advanced Manufacturing Organisation Types

    • Machine Tool Manufacturers​

    • Other

  • Technology areas

    • Advanced materials

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On 17 December 2025 the Commission proposed extending CBAM's scope from 2028 to around 180 additional downstream products. The Commission estimates the expansion would bring roughly 7,500 new importers into scope, with China, Türkiye, the United States, the United Kingdom and Japan the most exposed trading partners.

#CBAM #CarbonBorderAdjustment #TradePolicy

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