European Economic
and Social Committee
Revision of the carbon border adjustment mechanism (CBAM)
The EESC Youth Test is being applied to this opinion. Youth and Environment Europe was chosen by a group of interested youth organisations to represent all of them during the opinion-making process.
Practical information
- Composition of the study group
- Administrators / Assistant in charge: Gaizka MALO, Caroline VERHELST / Lukáš ĎURECH
- Contact
Background
The Carbon Border Adjustment Mechanism (CBAM) is a key instrument of the European Union for achieving its objective of climate neutrality, in line with the commitments undertaken under the Paris Agreement.
CBAM was designed as a measure to prevent carbon leakage, namely the situation in which European companies relocate their production to third countries to avoid the costs associated with EU climate policies, in particular those arising from the EU Emissions Trading System (EU ETS). Carbon leakage may also occur when imports from third countries replace equivalent products manufactured within the EU, resulting in the entry into the EU market of goods with a higher carbon footprint than those produced in accordance with European climate standards.
In this context, CBAM acts as a closing mechanism within the EU climate policy framework, given its close link with the EU ETS. Its objective is to align the carbon price of imported products with that faced by products manufactured in the EU, thereby ensuring a level playing field. At the same time, CBAM serves as a tool to encourage the decarbonisation of production processes in third countries.
Following a transitional period of application running from 1 October 2023 to 31 December 2025, the definitive phase of CBAM entered into force on 1 January 2026.
In this context, the European Economic and Social Committee will prepare an opinion analysing and putting forward proposals in relation to the recent legislative developments announced by the European Commission, in particular:
the proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) 2023/956 as regards the extension of its scope to downstream products and the strengthening of anti-circumvention measures;
the proposal for a Regulation of the European Parliament and of the Council establishing a Temporary Decarbonisation Fund.