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ARTICLE · 04 AUGUST 2025

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Carbon Border Adjustment Mechanism: Simplification And Next Steps

Arthur Cox
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Several initiatives are underway to refine the CBAM, which applies to certain goods being imported into the EU (in the categories of cement, iron and steel, aluminium, fertilisers, electricity and hydrogen)...

European UnionEnergy and Natural Resources
Niamh McGovern
Niamh McGovern
Christopher McLaughlin
Christopher McLaughlin
Maeve Crockett
Maeve Crockett
Katrina Donnelly
Katrina Donnelly
Suzanne Kearney
Suzanne Kearney
Aisling Carey
Aisling Carey
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Several initiatives are underway to refine the CBAM, which applies to certain goods being imported into the EU (in the categories of cement, iron and steel, aluminium, fertilisers, electricity and hydrogen), and is designed to apply the same carbon costs to those goods as would have been incurred had they been produced in the EU.

Simplification of the CBAM

We looked at the European Commission's proposal for an amending Regulation to simplify the CBAM Regulation in our insights blog post: Omnibus Package: Revision of the Carbon Border Adjustment Mechanism.

The EU co-legislators have now reached provisional agreement on the text of the amending Regulation. It is expected to be endorsed in September 2025, following which it will be published in the Official Journal of the EU and enter into force 20 days later.

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This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.

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