Implementing the EU Carbon Border Adjustment Mechanism (CBAM)

The transition phase of the carbon border adjustment mechanism (CBAM) began in October 2023. The first few months have clearly shown that improvements are urgently needed, for example in the form of a higher de minimis threshold and the longer applicability of default values. The EU Commission must quickly strengthen its information outreach and create a CBAM self-assessment tool to support small and medium-sized enterprises in particular. It is important for the German business community to avoid international competitive disadvantages. Although the CBAM is an attempt to tackle carbon leakage in certain economic sectors, the mechanism leads to unclear and disproportionate reporting obligations, burdens the competitiveness of the export industry on global markets and puts pressure on complex supply chains.