Carbon Border Adjustment Mechanisms (CBAMs)

Learn about the latest Carbon Border Adjustment Mechanisms (CBAMs) updates and how BSR can help you navigate their implementation. 

CBAMs are a policy instrument that apply a charge to imported goods based on their embedded greenhouse gas emissions. They can take the form of consumption taxes, import tariffs, or require purchasing of emissions permits upon import of goods from non-carbon-pricing regions.

Over the past two decades, CBAMs have evolved from a theoretical response to carbon leakage into an increasingly adopted policy tool at the intersection of climate, industrial competitiveness, and trade, with the EU enforcing the world's first CBAM in 2026 and the UK following in 2027.

Managing carbon becomes a business capability: companies affected by EU or UK CBAM obligations need robust emissions data, stronger supplier engagement, and the integration of GHG considerations across operations and strategy.

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