As part of the Carbon Border Adjustment Mechanism (CBAM for short), from 2026 there will be a pricing of greenhouse gas emissions (GHG emissions) for certain imported goods whose production in third countries emitted greenhouse gases (GHG). The transition phase of CBAM started on October 1, 2023 with the first reporting obligations for importers.
As from 2026, CBAM certificates should be purchased when importing certain GHGs goods. The amount of CBAM certificates to be purchased depends on the amount of GHG emissions generated during production. The price of the CBAM certificates is based on the price of the EU Emission Trading System (ETS) certificates at the time when the goods are imported. The costs imposed on imports by CBAM therefore correspond to those that would have arisen if production had taken place within the EU due to the emissions of GHGs and the associated purchase of EU ETS certificates.
CBAM thus creates a comparable CO2 pricing level between goods of different origins, regardless of whether production took place inside or outside the EU. In particular, this is intended to reduce the risk of production facilities being relocated to countries with less stringent climate regulations than within the EU (carbon leakage). In addition, this European measure is intended to create a monetary incentive for producers in non-EU countries to reduce GHG emissions in the manufacturing process.

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