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CBAM - how the EU's new carbon border tax will impact non-EU businesses

On 17 May 2023, the EU Regulation establishing a carbon border adjustment mechanism (the CBAM Regulation) came into force. The CBAM Regulation will become applicable in phases, with provisions applying from 1 October 2023, 31 December 2024 and 1 January 2026.

The CBAM is relevant to EU and non-EU businesses that sell or import in-scope goods from third countries into the EU. In this bulletin, we explore the impact of the CBAM on non-EU businesses, and provide recommendations for getting ‘CBAM ready’.