As part of the European Green Deal, in 2023 the EU introduced the carbon border adjustment mechanism (CBAM). The CBAM is a climate instrument to prevent carbon leakage. Carbon leakage occurs if, due to carbon costs, EU industry transfers production to third countries with less stringent emission constraints, or imports from these countries replace equivalent products with a lower greenhouse gas emission intensity due to the difference in climate policy. The CBAM currently covers cement, iron and steel, aluminium, fertilisers, electricity and hydrogen. It ensures that imports face the same carbon cost as EU production under the EU Emissions Trading System (EU ETS).

On 28 August 2025, the Commission launched a call for evidence that aims to gather the opinions of all stakeholders on the rules on the methodology for calculating emissions embedded in CBAM goods, rules on the adjustment of CBAM certificates to reflect the EU ETS free allocation, and rules on the deduction of the carbon price paid in a third country. 

This initiative is in line with the Commission’s efforts to simplify the CBAM Regulation and make it more cost-efficient. The Commission also aims to provide clarity and legal certainty for businesses, support Member States in their implementation efforts, and improve the overall effectiveness of the CBAM.

The main target audiences are EU-based and non-EU stakeholders, namely:

• all businesses in the EU and stakeholders in partner (non-EU) countries affected by CBAM;
• national competent authorities of the EU Member States in charge of CBAM implementation and third-country authorities (including customs authorities), notably those which have adopted or are developing carbon pricing instruments;
• academic institutions – in line with the Commission’s better regulation policy to develop initiatives informed by the best available knowledge, we particularly invite researchers and academic organisations to submit relevant published and pre-print scientific research, analyses and data.

You are encouraged to provide feedback on this initiative until 25 September 2025 here: 

• Carbon border adjustment mechanism (CBAM) methodology for the definitive period starting on 1 January 2026
• CBAM certificates – adjustment of obligation to surrender them to take account of free ETS allowances
• Carbon border adjustment mechanism (CBAM) – carbon price paid in a third country

More information about CBAM