CBAM – the Carbon Border Adjustment Mechanism

Since 2026, the Carbon Border Adjustment Mechanism (CBAM) has been changing the framework for imports of steel and iron products—and thus also for many fasteners. We explain what’s behind it and what it means for you.

CBAM at a Glance

What CBAM is, who it affects, and what it means for you—a concise summary.

What

An EU mechanism that imposes the same carbon costs on imported carbon-intensive goods as on EU products.

Since when

Full implementation phase beginning January 1, 2026; prior to that, a reporting-only phase beginning in October 2023.

Affected:

These include, among others, iron, steel, and aluminum—as well as fasteners made from these materials—from non-EU countries.

For you as a customer:

If you purchase goods through GEVAG, you generally do not have your own CBAM reporting obligation. However, material costs may change over time.

What is CBAM?

With the Carbon Border Adjustment Mechanism (CBAM), the European Union has created a tool that harmonizes CO₂ pricing for goods produced within the EU and those imported from outside the EU.

In the future, CBAM certificates will be required for affected imported goods. Their price is based on the European Emissions Trading System (EU ETS) and is therefore linked to the actual CO₂ costs within the EU.

The goal is to ensure fair competition: Goods from third countries should be subject to the same CO₂ costs as comparable products produced within the EU. The legal basis is Regulation (EU) 2023/956.

Why was the CBAM created?

Within the EU, industrial companies have been required to purchase CO₂ allowances for their emissions for years. Manufacturers outside the EU have not borne these costs so far and would therefore have a competitive advantage.

This would create an incentive to shift production to countries with less stringent environmental regulations—an effect known as “carbon leakage.” Emissions would not decrease; they would simply be shifted elsewhere.

CBAM addresses this issue and is part of the EU’s “Fit for 55” package, through which the Union aims to reduce its greenhouse gas emissions by at least 55 percent by 2030 and become climate-neutral by 2050.

Which products are affected?

First, product categories that are particularly high in CO₂ emissions:

  • Iron and Steel
  • Aluminum
  • Cement, Fertilizer, Hydrogen, Electricity
  • Particularly relevant to fastening technology: fasteners made of iron, steel, and aluminum—one of the few downstream products affected.

Not affected or exempt:

  • Goods of EU origin
  • Products from EFTA countries with equivalent CO₂ pricing: Switzerland, Norway, Iceland, Liechtenstein
  • Small quantities (de minimis): Importers of less than 50 metric tons of CBAM goods per year have been exempt from CBAM obligations since 2026.

From Mandatory Reporting to Cost Impact

  • Since Oct. 2023Transition Period

    Reporting requirement for importers only; no costs yet.

  • Since Jan. 1st 2026Final Phase

    Affected imports will be required to offset emissions using CBAM certificates.

  • Starts Feb. 1st 2027Earning the Certificates

    The purchase of certificates will begin—retroactively for imports in 2026.

  • 2026 → 2034Gradual Effect

    The CBAM factor will decrease from 97.5% (2026) to 0% (2034). Starting in 2034, the full volume of emissions must be covered by allowances.

The certificate price is based on the EU ETS and fluctuates (currently around 80 €/t CO₂). Until reliable, verified actual values are available, EU standard values (“default values”) are used for each country of origin and commodity code.

What does CBAM mean for you as a customer?

For goods you purchase through GEVAG, you generally do not have a separate CBAM reporting obligation—this obligation falls on the importer into the EU. We monitor regulatory developments and handle the steps required for import.

At the same time, we are being transparent about the implications: CBAM could lead to a structural increase in material costs for affected products from non-EU countries. The extent of this increase depends heavily on the country of origin and on the proportion of materials and manufacturing in the respective product. For material-intensive products, the impact tends to be greater than for products with a high proportion of labor-intensive components.

We analyze this on a product- and supplier-specific basis and coordinate any necessary adjustments with you early on and in a transparent manner. If you import CBAM-relevant goods directly from non-EU countries, we recommend that you review your own obligations. We have provided links to further information from the EU below.

FAQ

As a GEVAG customer, do I have to file a CBAM report myself?
For goods you purchase through GEVAG, this is generally not the case—the obligation to report lies with the importer into the EU. If you import directly from non-EU countries yourself, you should check your own obligations.
At what quantity does CBAM take effect?
A small-quantity threshold has been in effect since 2026: Anyone who imports fewer than 50 metric tons of CBAM-covered goods per year is exempt from CBAM requirements.
Which countries are exempt from the CBAM?
Goods originating in the EU, as well as imports from countries with equivalent CO₂ pricing—currently Switzerland, Norway, Iceland, and Liechtenstein.
When will it be necessary to purchase CBAM certificates?
The purchase will begin on February 1, 2027—retroactive to imports made in 2026.
Why do prices change?
Because affected imports will incur CO₂ costs through allowances in the future. The amount depends on the country of origin as well as the product’s material and manufacturing content.
How will CBAM costs change over time?
Through the so-called CBAM factor, the cost impact will increase gradually: from 97.5% cost-free coverage in 2026 down to 0% in 2034—after which the full scope of emissions will be subject to charges.

Contact & Related Links

CBAM is a fast-evolving topic. Your personal contact at GEVAG is available to answer any questions you may have at any time—please reach out to us via our contact form.


Official EU Information:
European Commission – Carbon Border Adjustment Mechanism

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