CBAM
EU mechanism putting a carbon price on imports of cement, steel, aluminium, fertilisers, hydrogen and electricity.
Also known as
Carbon Border Adjustment Mechanism
Related guide
CBAM Explained: The EU Carbon Border Adjustment Mechanism in PracticeThe Carbon Border Adjustment Mechanism prices the carbon embedded in imports of steel, cement, aluminium, fertilisers, electricity and hydrogen — starting with reporting today and financial obligations from 2026.
Related terms
- EU TaxonomyEU classification system defining which economic activities count as environmentally sustainable.
- EU ETSEU cap-and-trade system for carbon allowances covering power, heavy industry and intra-EU aviation.
- SFDREU regulation requiring financial market participants to disclose sustainability risks and impacts.
- Paris Agreement2015 UN treaty committing signatories to limit global warming to well below 2°C, pursuing 1.5°C.
- Fit for 55EU legislative package to cut net greenhouse gas emissions by at least 55% by 2030 versus 1990.
- Green DealThe EU's overarching strategy to become climate-neutral by 2050 across all sectors of the economy.