CBAM (Carbon Border Adjustment Mechanism)
CBAM is an EU measure that puts a carbon cost on certain imported goods — such as steel, cement, aluminium and fertilisers — so imports face carbon pricing comparable to EU production. It works alongside the EU ETS as free allowances are phased out.
CBAM requires importers to account for the embedded emissions of covered goods, levelling the carbon-cost playing field and reducing the risk of carbon leakage (production moving to regions without carbon pricing). For industrial exporters into the EU, it makes the carbon intensity of production a direct commercial factor.
Related terms
EU ETS · Carbon Intensity · Industrial Decarbonization
Related guides
The EU ETS explained for industrial operators
How the EU Emissions Trading System works, who it covers, and why the rising carbon price makes industrial efficiency a financial issue, not just an environmental one.
Factory decarbonization: a practical roadmap
A sequenced, no-regrets roadmap for cutting industrial emissions — efficiency first, then electrification and fuel switching, then the hard residual.