What is the Carbon Border Adjustment Mechanism (CBAM)?

Dutch term: CBAM | Legal basis: Regulation (EU) 2023/956

The Carbon Border Adjustment Mechanism (CBAM, Regulation (EU) 2023/956) is an EU trade instrument that imposes a carbon price on imports of certain carbon-intensive products (cement, iron and steel, aluminium, fertilisers, electricity, hydrogen) to prevent carbon leakage. Importers must purchase CBAM certificates corresponding to the carbon price that would have been paid if the goods had been produced under EU carbon pricing rules.

The transitional phase (reporting only) runs from 1 October 2023 to 31 December 2025. The definitive system, requiring purchase of CBAM certificates, applies from 1 January 2026. Importers must register as authorised CBAM declarants and report the embedded emissions of imported products. The price of CBAM certificates is linked to the EU Emissions Trading System (ETS) allowance price.

Why it matters for international businesses

For international businesses importing CBAM-covered products through the Netherlands, the financial impact of CBAM certificates and the reporting obligations must be factored into procurement contracts and supply chain cost models.