EU Carbon Border Adjustment Mechanism

Regulation (EU) 2023/956
European Union regulation
Text with EEA relevance
TitleRegulation of the European Parliament and the Council establishing a carbon border adjustment mechanism
Made underArticle 192(1) of the TFEU
Journal reference2023/956
History
European Parliament vote18 April 2023
Council Vote25 April 2023
Date made10 May 2023
Entry into force17 May 2023
Preparative texts
Commission proposalCOM/2021/564 final
Current legislation

The EU Carbon Border Adjustment Mechanism (CBAM, pronounced Si-Bam) is a carbon tariff on carbon intensive products, such as steel, cement and some electricity, imported to the European Union. Legislated as part of the European Green Deal, it takes effect in 2026, with reporting starting in 2023. CBAM was passed by the European Parliament with 450 votes for, 115 against, and 55 abstentions and the Council of the EU with 24 countries in favour. It entered into force on 17 May 2023.