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3 min read

CBAM Regulation: What It Is, How It Works and Weerg Compliance

CBAM

The CBAM regulation (Carbon Border Adjustment Mechanism) represents one of the key pillars of the European strategy for industrial decarbonisation and for protecting the competitiveness of companies that produce sustainably within the European Union.

Introduced by the European Union, CBAM has a direct impact on energy-intensive industrial value chains and on companies importing materials and semi-finished products from non-EU countries.

In this article we look at:

What is the CBAM regulation

CBAM is a carbon border adjustment mechanism whose objectives are to:

  • reduce global CO₂ emissions,

  • prevent carbon leakage (relocation of production to countries with less stringent environmental rules),

  • ensure fair competition between EU and non-EU producers.

In practice, CBAM introduces a carbon cost on imports of certain high-emission goods, aligning it with the cost already borne by European producers through the ETS (Emissions Trading System).

Which sectors are affected by CBAM

In its initial phase, the CBAM regulation applies to industrial sectors considered carbon-intensive, including:

  • steel and cast iron

  • aluminium

  • cement

  • fertilisers

  • hydrogen

  • electricity

These materials form the basis of many manufacturing value chains, including mechanical engineering, component manufacturing and contract production.

How the CBAM mechanism works

The CBAM mechanism is based on three key elements:

1) Calculation of embedded emissions

For each imported good, the amount of CO₂ emitted during production in the country of origin is estimated.

2) Mandatory declaration

Importers must periodically declare the embedded emissions of the imported goods.

3) Purchase of CBAM certificates

If emissions have not already been compensated in the country of origin, the importer must purchase CBAM certificates, whose value is linked to the price of CO₂ in the European ETS market.

CBAM REGULATORY TIMELINE

The regulation is being introduced progressively:

Transitional phase (2023–2025)

  • monitoring and reporting obligations

  • no payment of certificates

Operational phase (from 2026)

  • obligation to purchase CBAM certificates

  • full application of the mechanism

  • Actual purchase and use of CBAM certificates: from 1 February 2027, to cover the embedded emissions of goods imported in 2026 (including aluminium).

This makes 2026 a key year for compliance (data collection, systems, processes), even though the first financial outlay/certificate management begins in 2027.

What changes for manufacturing companies

CBAM does not only affect direct importers, but has an impact on the entire value chain:

  • increased attention to the origin of materials

  • demand for transparency in environmental data

  • preference for European or compliant suppliers

  • push towards more sustainable and traceable supply chains

For many companies, choosing production partners that are already compliant becomes a tangible competitive advantage.

Why Weerg IS COMPLIANT WITH THE CBAM REGULATION

Weerg operates according to a fully European production model, with facilities, processes and controls aligned with EU environmental regulations.

KEY ELEMENTS OF WEERG COMPLIANCE:

  • Production located in Europe
    → no direct exposure to CBAM-critical imports
  • Traceable and digitalised industrial processes
    → clear monitoring of materials, processes and energy
  • Advanced manufacturing technologies

    • industrial 3D printing (MJF, SLS, SLA)
    • high-efficiency CNC machining
      → optimisation of consumption and reduction of waste
  • Transparent supply chain
    → selection of materials compliant with EU standards

This allows Weerg to offer CBAM-compliant components, with no regulatory risk for customers.

Why CBAM compliance is a benefit to Weerg's customers

Choosing a CBAM-compliant manufacturing partner means:

  • avoiding bureaucratic complexity

  • reducing the risk of unforeseen costs related to certificates

  • ensuring continuity of supply

  • aligning with ESG and sustainability policies

  • protecting long-term competitiveness

In a context where sustainability is increasingly a market requirement, regulatory compliance becomes an integral part of service quality.

CBAM and digital manufacturing: a clear direction

The CBAM regulation accelerates a transformation already under way:

  • local and on-demand production

  • reduction of transport-related emissions

  • material optimisation

  • process digitalisation

Digital manufacturing, the model on which Weerg is based, is naturally aligned with these objectives.

Conclusions

The CBAM regulation marks a fundamental step towards a more sustainable, transparent and competitive European industry.
From 2026, compliance will no longer be an option, but a necessary condition for operating without risk.

Weerg is already CBAM-compliant thanks to:

  • European production
  • efficient processes
  • traceability
  • focus on sustainability

 

Want CBAM-compliant components without the hassle?

UPLOAD YOUR FILE NOW AND RELY ON A PARTNER ALREADY ALIGNED WITH EUROPEAN RULES

 

CBAM regulation FAQ

When does CBAM come into force?

From 1 January 2026, CBAM will be fully operational.
Companies subject to it must:

  • declare the embedded emissions in imported goods

  • purchase CBAM certificates if emissions have not already been compensated in the country of origin

How much does the carbon tax (CBAM) cost?

The cost of the CBAM carbon tax is not fixed; it depends on the price of CO₂ in the European ETS system.
In 2026, the average CO₂ price is expected to be approximately between €70 and €100 per tonne of CO₂.

The final cost for a company depends on:

  • the amount of embedded emissions in the imported good

  • any carbon pricing already paid in the country of origin

  • the ETS price at the time of purchasing CBAM certificates

What is the CBAM tax and how does it work?

CBAM (Carbon Border Adjustment Mechanism) is a carbon tax applied to imports of goods with high CO₂ intensity into the European Union.

How it works:

  • the importer calculates the CO₂ emissions generated to produce the imported good

  • emissions are declared to EU authorities

  • CBAM certificates equivalent to uncompensated emissions are purchased

  • the cost of certificates follows the European ETS price

What is CBAM for?

CBAM is designed to:

  • reduce global CO₂ emissions

  • prevent carbon leakage (relocation to less regulated countries)

  • ensure fair competition between EU and non-EU producers

  • encourage sustainable production and low-emission supply chains

  • align international trade with European climate objectives

In practice, CBAM makes the environmental cost of carbon a real economic factor in sourcing decisions.

 

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