CBAM
The Carbon Border Adjustment Mechanism (CBAM): how it works, timeline, certificate pricing, effects on importers, carbon leakage.
Our articles on CBAM, the EU carbon border adjustment mechanism
CBAM: Europe sets its first carbon border price at €75.36/tCO₂
On 7 April 2026, Europe reached an unprecedented milestone in the history of global climate policy: the European Commission published the first official price under the Carbon Border Adjustment Mechanism (CBAM), set at €75.36 per tonne of CO₂. It is the world's first operational carbon border price.
December 15, 2025
Everything you need to know about the Carbon Border Adjustment Mechanism (CBAM)
The Carbon Border Adjustment Mechanism (CBAM) is the European Union's new tool to level the playing field between European and foreign producers by applying a carbon price to imported goods. It targets emissions-intensive sectors (steel, cement, aluminum, fertilizers, etc.) and aims to prevent carbon leakage while accelerating global carbon pricing. Its gradual implementation began with a reporting phase (2023–2025), ahead of the mandatory purchase of certificates starting in 2026. CBAM is already influencing European carbon allowance prices through "proxy hedging" strategies.
May 15, 2025
Recent Changes to the CBAM: What Impact for Investors?
The EU's Carbon Border Adjustment Mechanism (CBAM) aims to prevent carbon leakage by applying a carbon price to imported goods, but faces criticisms regarding protectionism, implementation complexity, and revenue allocation. Iterative improvements, similar to the EU Emissions Trading System (EU ETS), are crucial for addressing these shortcomings and ensuring the CBAM effectively promotes green finance and responsible investment. This green finance initiative presents both opportunities and challenges for investors navigating regulatory uncertainties in the European carbon market.
March 30, 2025
Does the EU ETS provoke carbon leakage?
Carbon leakage, where companies relocate to avoid stringent climate policies, undermines emissions reduction efforts. The EU ETS combats this through free allowance allocation and the Carbon Border Adjustment Mechanism (CBAM), ensuring fair carbon pricing and encouraging global climate policy alignment for responsible investment. These sustainable finance policies aim to support investing in sustainable development and reduce the risk for impact companies.
August 12, 2024
What is carbon leakage in the EU ETS?
Carbon leakage occurs when industries relocate to avoid stringent climate policies, increasing emissions in regions with weaker regulations. The EU introduced the Carbon Border Adjustment Mechanism (CBAM) in 2023 to address this by imposing carbon pricing on imports. CBAM aims to reduce carbon leakage and incentivize global climate policy alignment to promote responsible investment.
July 17, 2024
How will the CBAM affect companies before 2026 and beyond?
The EU's Carbon Border Adjustment Mechanism (CBAM) introduces carbon costs for importers of certain goods like cement, iron, and aluminum, requiring companies to account for the carbon intensity of their products and potentially purchase carbon allowances. Companies should prepare by gathering emissions data, assessing financial implications, and registering with regulatory bodies before full implementation in 2026, while anticipating rising EUA prices. This impacts investing in responsible and sustainable businesses.
March 20, 2024
The EU CBAM blueprint, evolution and effects from 2023 onward
The EU's Carbon Border Adjustment Mechanism (CBAM) requires importers to pay for the carbon intensity of their products, aiming to protect EU industries from carbon leakage and promote global adoption of carbon pricing. CBAM, starting with sectors like cement and expanding over time, has faced initial global discontent but is gradually gaining acceptance as countries adapt and develop their own carbon pricing mechanisms. This impacts global trade, carbon pricing, and responsible investment in various countries.
March 20, 2024