CBAM (Carbon Border Adjustment Mechanism)
EU's carbon border levy that puts a price on emissions embedded in imported carbon-intensive goods.
The Carbon Border Adjustment Mechanism (CBAM) is the EU's climate tariff. Its purpose is to prevent carbon leakage — the relocation of production to countries with weaker climate rules.
Importers of certain products (cement, iron & steel, aluminium, fertilisers, hydrogen, electricity) must report embedded CO₂ emissions and, from 2026, purchase CBAM certificates.
Since the Omnibus reform a de-minimis threshold exempts many small importers from the obligation.