INFOGRAPHIC: Brussels finetunes CBAM as importers brace for impact

As the EU's Carbon Border Adjustment Mechanism starts its definitive phase from Jan. 1, 2026, businesses are grappling with uncertainty over emissions calculations, default values, and carbon costs.

Despite recent efforts by Brussels to simplify CBAM, anxiety remains high in the aluminum, cement, iron and steel, fertilizer, electricity, and hydrogen sectors, as this policy could fundamentally reshape international trade.

Businesses are anxiously waiting for the European Commission to provide more details on CBAM to help importers estimate the costs of this carbon pricing mechanism and its impact on global supply chains.

The European Commission is still consulting with the industry as it looks to refine CBAM regularly to balance the EU's industrial competitiveness with its climate commitments.