What is CBAM and how does it differ from a carbon tax?

More specifically, what is the carbon border adjustment mechanism (CBAM), and how does it differ from a carbon tax?

The CBAM is a regulatory measure implemented by the EU to address carbon leakage by imposing financial adjustments on imported goods based on their embedded greenhouse gas emissions. While it functions similarly to a carbon tax, it is not officially categorized as one. From 2026, companies importing certain commodities like aluminum, steel, fertilizers, electrical energy, hydrogen, and cement will be required to report emissions and purchase CBAM certificates to offset these emissions.

Dubrink’s CBAM Compliance Platform is the ultimate solution for importers and suppliers. It offers invaluable support in effortlessly managing CBAM data. From submission requests, our platform simplifies tasks such as validation, calculation, and storage, ensuring a smooth and compliant process at every step.

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