CBAM — Carbon Border Adjustment Mechanism
The EU's carbon levy on imports
What CBAM is
CBAM (Regulation (EU) 2023/956) is the EU mechanism that puts a carbon price on imports of carbon-intensive goods, equivalent to the price of producing them in the EU. The aim is to prevent “carbon leakage” — moving production outside the EU to dodge climate requirements. It covers iron and steel, aluminium, cement, fertilisers, electricity and hydrogen.
Its carbon-footprint data overlaps with DPP for steel and with the Digital Product Passport →
How CBAM works
CBAM — Carbon Border Adjustment Mechanism
Key dates
October 2023 – 2025
Transitional phase — reporting of embedded emissions only, no financial obligations.
1 January 2026
Definitive regime — the obligation to buy and surrender CBAM certificates begins.
2027
First surrender of certificates for 2026 imports.
Ongoing
Authorised CBAM declarant status is required for imports above the threshold.
CBAM
Frequently asked questions
Iron and steel, aluminium, cement, fertilisers, electricity and hydrogen, plus some downstream products.
From 1 January 2026 importers begin buying and surrendering CBAM certificates; the first surrender is in 2027 for 2026 imports.
Both require reliable data on the carbon footprint of every tonne. A company that has built its DPP data already holds what it needs for its CBAM declarations.
Establish the embedded emissions of imported goods, obtain authorised CBAM declarant status, and link CBAM and DPP reporting into one process.
Related solutions
How to prepare
DPP for Importers
Importers ensure a valid DPP for every product and provide EU market access without risk of sanctions and delays.
DPP for Steel and Iron
The first product group under ESPR — traceability of the composition, origin and carbon footprint of steel.
DPP for Manufacturers
Manufacturers create and maintain DPP, prove compliance and sustainability, earn trust and improve their processes.
