- On December 17, 2025, the European Commission released provisional documents detailing the definitive Carbon Border Adjustment Mechanism (CBAM) regime, which will be effective from January 1, 2026. This includes 11 legislative acts and 13 supplementary materials outlining new emissions calculation methods, customs procedures, and verification standards, impacting businesses importing goods into the EU.
- Key provisions of the CBAM include the expansion of its scope to cover additional goods, the introduction of enhanced anti-circumvention measures, and the establishment of a Temporary Decarbonization Fund aimed at supporting energy-intensive industries vulnerable to carbon leakage.
- Businesses affected by the CBAM are urged to assess the implications of these changes on their import strategies, ensure compliance with new requirements, and prepare for potential adjustments in pricing and reporting related to carbon emissions.
Source EY
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