EU Carbon Border Adjustment Mechanism (CBAM) Transition Phase
Effective Jan 1, 2026
The EU's Carbon Border Adjustment Mechanism enters its transition phase, requiring importers to report embedded emissions on certain products. While this is an EU measure, it affects US exporters to Europe.
Overview
The EU Carbon Border Adjustment Mechanism (CBAM) is in its transition phase, requiring importers to report the embedded carbon emissions in certain products. Full financial obligations begin in 2026.
Covered Products
CBAM applies to imports of:
- Iron and steel (Chapters 72-73)
- Aluminum (Chapter 76)
- Cement (Chapter 25)
- Fertilizers (Chapter 31)
- Electricity
- Hydrogen
Relevance for US Importers
While CBAM is an EU measure, it's relevant because:
- It may serve as a model for future US carbon tariff proposals
- US exporters to the EU must prepare emissions data
- It affects global supply chain decisions and sourcing
Key Dates
- Transition phase: October 2023 - December 2025 (reporting only)
- Full implementation: January 2026 (financial obligations begin)