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EU Carbon Border Adjustment Mechanism (Regulation 2023/956)

Requires importers of certain carbon-intensive goods into the EU to purchase certificates corresponding to the carbon price that would have been paid if the goods were produced under EU emissions rules. Applies to importers of iron, steel, cement, aluminum, fertilizers, electricity, and hydrogen.

28

Rules extracted

150

Obligations decomposed

5.4x

Avg obligations per rule

🇪🇺 European Union

Jurisdiction

About this regulation

The CBAM establishes a carbon border adjustment mechanism to address the risk of carbon leakage by equalising the price of carbon between domestic products subject to the EU Emissions Trading System and imported goods. It covers cement, iron and steel, aluminium, fertilisers, electricity, and hydrogen. The transitional period applies from 1 October 2023; full application with financial obligations from 1 January 2026.

What AuditDSS covers

Source

1

Regulation

Extracted

28

Rules

Decomposed

150

Obligations

5.4x

Decomposition ratio

Each rule is decomposed into an average of 5.4 atomic obligations — the smallest testable units that can be independently violated.

Fully extracted & scored

All 150 obligations have been decomposed, titled, risk-scored, and embedded for semantic matching.

Risk scoring

Every obligation in CBAM is scored across independent risk dimensions:

W

Obligation Weight

How critical within the regulatory framework

L

Violation Likelihood

How often breached in practice

E

Enforcement Evidence

Regulator enforcement history and penalties

C

Cascade Dependency

How many obligations depend on this one

Regulatory details

Full title
EU Carbon Border Adjustment Mechanism (Regulation 2023/956)
Regulatory body
European Parliament and Council
Jurisdiction
🇪🇺 European Union
Document type
regulation
Effective date
October 1, 2023
Issuing authority
European Parliament and Council of the European Union
Official source
View source document ↗

Who this applies to

importersauthorised CBAM declarantsaccredited verifierscustoms authorities

Key requirements

  • CBAM certificate purchase and surrender
  • embedded emissions calculation
  • quarterly transitional reporting
  • third-party verification
  • carbon price deduction

Frequently asked questions about CBAM

What is CBAM?

The CBAM establishes a carbon border adjustment mechanism to address the risk of carbon leakage by equalising the price of carbon between domestic products subject to the EU Emissions Trading System and imported goods. It covers cement, iron and steel, aluminium, fertilisers, electricity, and hydrogen. The transitional period applies from 1 October 2023; full application with financial obligations from 1 January 2026.

Who does CBAM apply to?

CBAM applies to importers, authorised CBAM declarants, accredited verifiers, customs authorities.

How many obligations does CBAM contain?

AuditDSS has decomposed CBAM into 150 atomic obligations from 28 rules. Each obligation is independently testable and risk-scored.

What are the key requirements of CBAM?

The key requirements include: CBAM certificate purchase and surrender, embedded emissions calculation, quarterly transitional reporting, third-party verification, carbon price deduction.

How can I assess my CBAM compliance?

Upload your compliance policy to AuditDSS. The platform maps your document against all 150 CBAM obligations using deterministic AI scoring — not checklists or LLM summaries. You get a risk-scored gap analysis showing exactly which obligations are covered, partially covered, or missing.

Which jurisdiction enforces CBAM?

CBAM is enforced in European Union by European Parliament and Council.

When did CBAM come into effect?

CBAM became effective on October 1, 2023.

What industry does CBAM apply to?

CBAM is primarily relevant to the Carbon & ESG Reporting industry. AuditDSS covers 58 regulations in this industry sector.

Build a CBAM compliance pack

Don't have a compliance policy yet? AuditDSS generates a complete compliance pack for CBAM — alone or combined with other regulations your business needs. Every clause is mapped to specific obligations.

Policy

High-level commitments and governance framework covering CBAM requirements.

Procedures

Step-by-step operational procedures to implement each policy commitment.

Forms & checklists

Ready-to-use forms, registers, and checklists for day-to-day compliance operations.

Multi-regulation

Combine CBAM with other regulations into a single unified compliance pack for your business.

Already have a policy? Assess it against CBAM

1

Upload your document

Upload your compliance policy, program manual, or operational document. AuditDSS accepts any text-based document.

2

AI maps against 150 obligations

Your document is scored against every obligation in CBAM. Each claim is mapped to the obligation tree and evaluated for coverage.

3

Risk-scored gap report

Receive every gap ranked by risk priority with remediation guidance, enforcement evidence, and cascade impact analysis.

Related regulations in Carbon & ESG Reporting

Assess your CBAM compliance

Upload your document and get a risk-scored gap analysis against 150 CBAM obligations in under 5 minutes.