Introduction to CBAM

The Carbon Border Adjustment Mechanism (CBAM) is an environmental policy tool being introduced by the EU to help achieve its decarbonisation targets and prevent “carbon leakage,” where production shifts to countries with less stringent climate policies. Starting with a transitional period from 1 October 2023 to 31 December 2025, and moving to full implementation from 1 January 2026, CBAM will require importers of carbon-intensive products such as iron, steel, cement, aluminium, fertilisers, hydrogen, and electricity to purchase certificates corresponding to the embedded carbon emissions in their imports. This aims to equalise the price of carbon between domestic and imported products, ensuring fair competition and encouraging global emission reductions.

The CBAM process involves registering as an importer, quarterly emissions reporting, and purchasing CBAM certificates. The European Commission (EC) will oversee the mechanism, with Ireland’s Environmental Protection Agency (EPA) acting as the competent body. Detailed guidance and training resources are being prepared to assist stakeholders in complying with these new requirements. As the mechanism is phased in, businesses must prepare for the increased data collection and reporting demands to avoid potential fines and ensure smooth integration into the CBAM framework.

This regulation will significantly impact the steel industry in Ireland, making it essential to begin familiarising yourself with it promptly.

Download the full CBAM Brief PDF

Download the CBAM Goods List PDF