CBAM stands for Carbon Border Adjustment Mechanism. It is an EU climate policy that puts a carbon price on imported goods like steel, aluminium, and cement. From 2026, EU-based importers will need to report and pay for the emissions embedded in those goods.
CBAM applies to imports in six sectors: cement, iron and steel, aluminium, fertilisers, electricity, and hydrogen. During the transitional phase (2023–2025), importers must submit quarterly CBAM reports detailing the embedded emissions of their imports. From 2026, importers must purchase CBAM certificates corresponding to the carbon price that would have been paid if the goods had been produced under EU carbon pricing rules. The price of CBAM certificates is linked to the EU ETS carbon price, and free allowances for covered sectors will be gradually phased out by 2034.
Use the CBAM cost calculator to estimate your carbon border adjustment costs, and explore our CBAM compliance platform for end-to-end support. Learn more about measuring embedded emissions in your imported goods.
See how Coolset helps companies with CBAM compliance and reporting →
