Implications of the CBAM for the iron and steel sector

The Carbon Border Adjustment Mechanism (CBAM) is an environmental policy measure implemented by the European Union, to address the issue of carbon leakage and encourage decarbonisation practices globally. The CBAM will take effect in October, starting with six selected sectors, including the iron and steel sector. Iron and steel importers in the EU will start with reporting obligations and then face financial obligations progressively starting from 2026. This report provides the implementation details of the CBAM on the iron and steel sector as well as the impact of the tax on the sector.