The EU’s Carbon Border Adjustment Mechanism (CBAM) is designed to put a fair price on the carbon emissions embedded in carbon-intensive goods imported into the EU, while encouraging cleaner industrial production in third countries. The gradual introduction of CBAM is aligned with the progressive phase-out of free allowance allocation under the EU Emissions Trading System (ETS).

Regulation (EU) 2025/2083 amends Regulation (EU) 2023/956 (CBAM) to simplify and strengthen its implementation ahead of its full application from 1 January 2026. The amendment introduces a single mass-based threshold (initially 50 tonnes per year) for imports of CBAM goods. Importers below this threshold are exempt from CBAM reporting and certificate surrender obligations