What you need to know

The way we trade is evolving - and carbon emissions are now just as important as customs duties

The Carbon Border Adjustment Mechanism (CBAM) is the EU’s new legislation designed with the objective to reduce carbon emissions. 

To help you understand how this affects your business, we’ve created a short explainer animation.

 

What is CBAM?

CBAM adds a carbon cost to imported goods like steel and aluminium, based on how much CO2 was emitted during production.

Its goal is to:

• Prevent carbon leakage by supporting EU manufacturers
• Encourage global climate responsibility
• Promote greener supply chains

Who will it affect?

CBAM applies to companies importing covered goods into the EU—especially products such as bolts, screws and other fasteners.

If your goods come from countries without equivalent carbon pricing, you’ll soon need to:

• Track carbon emissions from raw materials and production
• Purchase CBAM certificates for those emissions

When does CBAM come into effect?

• 2025: Reporting period (no cost yet)
• January 2026: Financial obligations begin
• 2034: 100% of embedded emissions subject to CBAM charges

Why this matters

• Customers: You’ll see changes in landed cost
• Suppliers: You must provide emission data

What to do next

• Watch the animation
• Share it with your team
• Ask questions early

We’re here to support you as these changes take shape. We’ll update this page again in Q4 2025, once the European Commission publishes the final CBAM benchmark figures. 

Together, we’ll adapt to a greener future - one fastener at a time.