Carbon Border Adjustment Mechanism

The EU’s Carbon Border Adjustment Mechanism (CBAM), being phased in from 1st October 2023, is a tool to put a fair price on the carbon emitted during the production of carbon intensive goods that are entering the EU, and to encourage cleaner industrial production in non-EU countries.

The gradual introduction of the CBAM is aligned with the phase-out of the allocation of free allowances under the EU Emissions Trading System (ETS) to support the decarbonisation of EU industry.

Although CBAM will initially only apply to imports of certain goods, this list will expand to include other carbon intensive products probably including carbon fibre.

Composites UK members can access information here to explain the scheme in more detail and the implications on manufacture in the UK (log in required).