On 1 October 2023, the European Union’s Carbon Border Adjustment Mechanism (CBAM) entered into application in its transitional phase.

It is the EU’s flagship measure to deal with carbon leakage - the outsourcing of production or supply chains to states where weaker environmental or climate regulations are in place. When fully in place from January 2026 the system will impose charges on goods which originate from sources which do not operate equivalent climate regulations.

This webinar discussed the key top level requirements for producer companies outside the EU complying with the new rules on their goods exports to the EU from this autumn. Knowledge and having compliance processes in place will be critical for producers of goods in scope of CBAM in protecting their sales to EU customers.

The European Commission have outlined that the EU CBAM will initially apply to imports of certain goods and selected precursors whose production is carbon intensive and at most significant risk of carbon leakage. The Commission have identified the following sectors as initially within scope during the transitional phase of the EU CBAM: iron and steel; aluminium; cement; fertilisers; electricity; hydrogen.