Proposal for a Regulation establishing a carbon border adjustment mechanism

Author (Corporate)
Series Details COM (2021) 564
Publication Date 14/07/2021
Content Type


Legislative initiative tabled by the European Commission on 14 July 2021 establishing a new Carbon Border Adjustment Mechanism (CBAM). This is a text with EEA relevance.

Further information:

The European Commission first announced its intention to propose a CBAM in its Communication setting out the European Green Deal, applicable to selected sectors to reduce the risk of carbon leakage. The mechanism aims to ensure that the price of imports reflect more accurately their carbon content, should differences in levels of ambition worldwide persist. This measure is designed to comply with World Trade Organisation (WTO) rules and other international obligations of the European Union (EU).

The CBAM is seen as an alternative to the measures that address the risk of carbon leakage in the EU's Emissions Trading System (EU ETS), and it is meant to avoid that the emissions reduction effort of the EU are offset by increasing emissions outside of the EU through relocation of production or increased imports of less carbon-intensive products.

The draft law was unveiled by the European Commission on 14 July 2021, as part of the so-called Fit for 55 legislative package. The Council of the European Union adopted its general approach on 15 March 2022. The European Parliament's relevant committee adopted a preliminary position on 17 May.

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Commentary and Analysis
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EUObserver, 16/07/2021: EU carbon border tax to target imports from 2026
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EUObserver, 17/05/2022: MEPs raise ambition on EU carbon market reform

EUR-LEX: SWD(2021)643: Staff Working Document accompanying the Proposal - Impact Assessment Report
EUR-LEX: SWD(2021)644: Staff Working Document accompanying the Proposal - Executive Summary of the Impact Assessment Report
EUR-LEX: SWD(2021)647: Staff Working Document accompanying the Proposal - Subsidiarity Grid
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European Commission: DG Taxation and Customs Union: Green Taxation: Carbon Border Adjustment Mechanism
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Norwegian Government: Letter, 02/07/2021: Carbon Border Adjustment Mechanism – Preliminary Norwegian Positions
European Commission: Press Release, 14/07/2021: European Green Deal: Commission proposes transformation of EU economy and society to meet climate ambitions
European Commission: Carbon Border Adjustment Mechanism: Questions and Answers (14 July 2021)
EPP EP Group: Newsroom, 21/12/2021: De-carbonise, not de-industrialise Europe
Norwegian Government: Letter, 02/03/2022: Carbon Border Adjustment Mechanism – Norwegian Positions
Council of the European Union: Press Release, 15/03/2022: Council agrees on the Carbon Border Adjustment Mechanism (CBAM)
European Parliament: Press Release, 17/05/2022: CBAM: MEPs push for higher ambition in new carbon leakage instrument

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