The Carbon Border Adjustment Mechanism (CBAM): what you need to know

The Carbon Border Adjustment Mechanism (CBAM) is one of the levers of the Green Deal, which aims to reduce European CO2 emissions by 55% by 2030 and achieve carbon neutrality by 2050.

The aim of the scheme is to combat carbon leakage by requiring companies importing into Europe to pay, gradually by 2035, a "border carbon tax" proportional to the amount of carbon emitted by products imported when they are manufactured outside the European Union.

The objectives are clear:

• to apply the same carbon price, whether products are produced in the EU or outside the EU, in order to apply a principle of fair competition,
• to prevent the relocation of production, so that European companies that take steps to limit their CO2 emissions are not penalised in comparison with those that relocate their production,
• encourage exporting countries to produce sustainably.

The MACF applies to companies that import products or goods (raw materials as well as intermediate, semi-finished or finished products) such as iron and steel, fertilisers (nitrogen fertilisers), cement, electricity, aluminium or hydrogen. The list of these products is set to expand over time.

The importers concerned must therefore declare the emissions generated by the production of the products they import into the European Union, ensure that the emissions declared by their suppliers have been duly verified by an accredited body (excluding default values) and gradually purchase ‘MACF certificates’ to return a number equivalent to their imported emissions.

During the transitional phase (1st October 2023 to the end of 2025), importers were subject to reporting obligations, with no financial adjustment applied to their imports.

From 1st January 2026 until 2034, the CBAM will gradually ramp up, possibly incorporating other sectors of activity.

With a wide range of expertise (greenhouse gas emissions assessment, checking CO2 emissions declarations), Apave is at your side:

• from now on, to assess the CO2 emissions of products manufactured outside the EU
• from 2027, to check your emissions declarations.

Our consulting and verification services enable you to apply MACF regulations under the best possible conditions: identify your activities, processes and flows covered by the regulations, establish a methodology for data collection (emission factors, activity data, etc.) and emissions calculation, etc.