Regulation (EU) 2023/956 of the European Parliament and of the Council of 10 May 2023 establishing a carbon border adjustment mechanism

1. Date of issuance 

Adopted on 10 May 2023.

2. Effective date

Entered into force on 17 May 2023.
The transitional phase began on 1 October 2023.

3. English title 

Regulation (EU) 2023/956 of the European Parliament and of the Council establishing a carbon border adjustment mechanism (CBAM).

4. Summary 

The Carbon Border Adjustment Mechanism (CBAM) is established to ensure that imported goods entering the European Union (EU) face the same carbon cost as goods produced within the EU.
Its purpose is to prevent carbon leakage—the relocation of production to countries with lower or no carbon costs.
Initially applied to certain carbon-intensive sectors (such as cement, steel, aluminium, fertilizers, electricity, and hydrogen), the mechanism will transition to a full phase requiring the purchase of CBAM certificates starting in 2026.

5. Detailed content 

Available for download here.

Translated by Vũ Hưng.