Carbon Border Adjustment Mechanism (CBAM): Affected product group

The Carbon Border Adjustment Mechanism (CBAM) is a central component of the European Union's (EU) "Fit for 55" package. This mechanism aims to ensure that the reduction of greenhouse gas emissions in the EU - the target is a reduction of at least 55% by 2030 compared to 1990 levels - is not undermined by the shifting of emissions abroad. CBAM complements the existing EU Emissions Trading System (EU ETS) and is intended to reduce the risk of carbon leakage.

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How does CBAM work?

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CBAM is based on a simple principle: companies wishing to import certain goods from non-EU countries into the EU must purchase so-called carbon credits. These certificates correspond to the amount of emissions generated during the production of the imported goods. This means that a comparable emissions price is set for imported goods as for products produced within the EU, creating a level playing field.

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Which companies and goods are affected?

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Companies in the EU that import goods such as iron, steel, cement, aluminium, electricity, fertilizers or hydrogen from non-EU countries are subject to CBAM regulations. Certain upstream and downstream products, particularly from the iron and steel industry, are also affected. During the current transition phase, the EU is also planning to evaluate whether additional product groups should be included.

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Do your goods fall under CBAM?

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Whether your products are affected by the CBAM regulation can be determined by the CN codes of the imported goods. Our Excel tool "Carbon Border Adjustment Mechanism (CBAM): Affected product group" provides a complete overview of the affected product groups and associated CN codes. This table also shows for which goods both direct and indirect emissions must be taken into account.

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All companies in the EU that import iron, steel, cement, aluminium, electricity, fertilizers, hydrogen, certain primary products and some upstream and downstream products (especially iron and steel) - in pure or processed form - from non-EU countries are subject to the CBAM rules. During the transition phase, the EU plans to examine whether the scope of application should be extended to other goods where there is also a risk of carbon leakage.

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If you want to find out whether you fall under the CBAM Regulation (based on the CN codes of the goods you import from non-EU countries), download our Excel "Carbon Border Adjustment Mechanism (CBAM): Affected product group". The Excel table lists all types of goods with the corresponding CN codes that must be taken into account under the CBAM Regulation. You can also see for which goods only direct emissions and for which goods indirect emissions must also be taken into account.

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