The Eu’s CBAM: What Will Be Its Impact on Trade, Costs and Competitiveness?

The European Union’s Carbon Border Adjustment Mechanism (CBAM) entered its pricing phase early this year, reshaping trade flows, industrial competitiveness and carbon cost exposure across global markets. As free allowances under the EU Emissions Trading System have begun phasing out in tandem, domestic producers of industrial products, along with importers of foreign-produced iron and steel, aluminum, fertilizers, cement, hydrogen and electricity face rising compliance costs tied directly to the EU carbon price. The distribution of these costs will depend not only on trade volumes and emissions intensity, but on exporters' carbon-price readiness and the extent to which foreign carbon costs can be deducted from the CBAM liability. In this webinar, BNEF analysts will examine: How CBAM will affect major exporting markets - especially in Asia Pacific Changes to the steel, aluminum, fertilizer, cement and hydrogen sectors due to CBAM The impact on domestic European manufacturers The default and actual cost obligations that products and regions face, profiling BNEF's EU CBAM Obligation Calculator Future policy developments – including benchmark updates, sector exemptions and a potential downstream expansion – and how they could impact stakeholders.