1.   WASI
  2. Sustainability
  3. CBAM

EU Carbon Border Adjusment Mechanism

EU Regulation 2023/956

CBAM - Carbon Border Adjustment Mechanism

 

The Carbon Border Adjustment Mechanism (CBAM) is a new climate protection instrument introduced by the European Union. With EU Regulation 2023/956, the EU has established a unified framework to ensure that CO₂‑intensive imported goods are subject to the same CO₂ costs as comparable products manufactured within the EU. This aims to prevent production from shifting to countries with lower environmental standards (carbon leakage).

CBAM entered into a transitional phase on 1st October 2023 and became fully effective on 1st January 2026.

Why is the EU introducing CBAM?

The EU pursues multiple objectives with CBAM:

  • Protecting European companies that already comply with strict climate regulations
  • Aligning CO₂ costs between EU producers and importers to ensure fair competition
  • Preventing carbon leakage — the relocation of emission‑intensive production to non‑EU countries
  • Encouraging third countries to implement their own CO₂ pricing mechanisms
  • Increasing transparency in global supply chains by requiring importers to document emissions extensively

The long‑term goal is that by 2035, the price of a product should no longer differ depending on whether it is produced in the EU or in a third country.

Which goods are affected?

CBAM currently applies to six particularly CO₂‑intensive product groups (additional categories are under review):

  • Cement
  • Electricity
  • Fertilisers
  • Hydrogen
  • Iron and (Stainless) Steel
  • Aluminium

Since the production of fasteners also falls within these sectors, our products are subject to CBAM requirements.

What does CBAM include in detail?

Importers face a number of complex obligations:

  • Recording and documenting direct and indirect emissions (including precursor materials)
  • Assessing each production site and all process steps from raw material to finished product
  • Reporting all emissions data in tonnes of CO₂
  • Submitting emission reports monthly after the end of each quarter (ultimately expected at shorter intervals)
  • Importing CBAM‑covered goods is permitted only for authorized CBAM declarants from 2026 onward
  • Emissions from transportation are currently not relevant but are expected to be included in the near future — especially maritime transport
  • Non‑compliance will result in penalties significantly exceeding the cost of certificates

What applies from 1st January 2026?

Companies importing CBAM‑covered goods must:

  • verify whether their products fall within the scope of CBAM,
  • ensure that all required CO₂ data is provided by their suppliers,
  • establish internal documentation and reporting processes,
  • submit annual reports on imported quantities and associated emissions.

What does CBAM mean for you as a WASI customer?

For you, nothing changes.

WASI, as a responsible importer, handles:

  • the complete fulfilment of all legal CBAM obligations,
  • the correct collection and documentation of all emissions data,
  • timely reporting to EU authorities,
  • compliance management across our entire supply chain.

You will continue to receive your goods from us as usual.

Please be advised:

Due to the implementation of CBAM price increases are unavoidable.

(Kopie 3)