EU CBAM mechanism
I. Background introduction of Carbon Border Adjustment Mechanism (CBAM)
The Carbon Border Adjustment Mechanism (CBAM) is a climate policy tool established by the European Union for high carbon emission products entering its market, aimed at avoiding the risk of "carbon leakage" and promoting the transition of global industrial production to lower carbon emissions. This mechanism will be linked to the gradual withdrawal of free quotas from the EU Emissions Trading System (EU ETS), supporting the EU in achieving its industrial decarbonization goals.
CBAM has entered a transitional period from 2023 to 2025 and will be fully implemented from 2026 onwards.
II. CBAM will be officially launched on January 1, 2026
Starting from January 1, 2026, CBAM will officially be fully implemented. Relevant EU importers must complete the CBAM declaration before March 31, 2026. Any enterprise that imports more than 50 tons of cement, steel, aluminum, fertilizer, as well as all importers of electricity and hydrogen, must submit an application or obtain authorization before importing, otherwise they may face goods detention, delay or punishment.
III. From 1 January, 2028, CBAM will be extended to cover some downstream products of steel and aluminum-intensive industries
To prevent "emission transfer" rather than "emission reduction", the European Commission plans to expand the scope of application of the Carbon Border Adjustment Mechanism (CBAM) to 180 categories of downstream products that are intensive in steel and aluminum, including machinery and equipment, household appliances, and so on.
Tianjin Youfa Steel Pipe Group actively responds to the EU CBAM mechanism
In order to smoothly enter and maintain competitiveness in the EU market, Tianjin Youfa Steel Pipe Group actively cooperates with EU importers to jointly respond to the requirements of the EU Carbon Border Adjustment Mechanism (CBAM). CBAM mainly imposes carbon costs on specific high carbon leakage risk industries (including steel, aluminum, cement, etc.) imported into the EU for their "hidden carbon emissions". Steel products (including various types of steel pipes) are the first industries fully covered by CBAM.
Tianjin Youfa International Trade Co., Ltd. provides detailed direct and indirect carbon emission data during the production process of steel pipe products to EU importers. This is the basis for calculating the required number of CBAM certificates, which are purchased by EU importers to cover the carbon emission costs of the products.
This active cooperation is not only to meet current compliance requirements, but also a strategic manifestation of Youfa Group's efforts to promote its own green and low-carbon transformation and enhance international competitiveness. It demonstrates to the global market the responsibility and ability of Chinese steel companies to address climate change and practice sustainable development.
Post time: Jan-05-2026