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CBAM Regulation: What It Is, How It Works and Weerg Compliance
The CBAM regulation (Carbon Border Adjustment Mechanism) represents one of the key pillars of the European strategy for industrial decarbonisation...
3 min read
Weerg staff
:
Jan 28, 2026
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:
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).
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.
The CBAM mechanism is based on three key elements:
For each imported good, the amount of CO₂ emitted during production in the country of origin is estimated.
Importers must periodically declare the embedded emissions of the imported goods.
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.
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
This makes 2026 a key year for compliance (data collection, systems, processes), even though the first financial outlay/certificate management begins in 2027.
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.
Weerg operates according to a fully European production model, with facilities, processes and controls aligned with EU environmental regulations.
This allows Weerg to offer CBAM-compliant components, with no regulatory risk for 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.
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.
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:
Want CBAM-compliant components without the hassle?
UPLOAD YOUR FILE NOW AND RELY ON A PARTNER ALREADY ALIGNED WITH EUROPEAN RULES
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
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
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
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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