What is CBAM?
It is the EU’s new Carbon Border Adjustment Mechanism, an environmental measure that applies a cost to the CO₂ emissions embedded in certain imported goods.
It is part of the Green Deal and the “Fit for 55” package, which aims to reduce emissions by 55% by 2030, preventing carbon leakage and ensuring fair competition between EU and non-EU products.
More details are available on the official European Commission website: https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism_en
and in the official European Commission press release: https://ec.europa.eu/commission/presscorner/detail/it/IP_21_3541
Which sectors and products are involved?
At this stage: iron and steel (including screws and fasteners), cement, fertilisers, aluminium, electricity and hydrogen:
- Iron and steel (CN 7318: screws, bolts, nuts, washers, etc.)
- Aluminium
- Cement
- Fertilisers
- Electricity
- Hydrogen
The full list is available in EU Regulation 2023/956:
https://eur-lex.europa.eu/legal-content/IT/TXT/?uri=CELEX:32023R0956
https://eur-lex.europa.eu/legal-content/IT/TXT/?uri=CELEX:32023R1773
When does CBAM come into force
Transitional phase (2023–2025)
From 1 October 2023 to 31 December 2025, importing companies must:
- Register in the EU CBAM Registry
- Submit a quarterly report on the embedded emissions of imported products
- No payments are required during this phase
Full implementation phase (from 1 January 2026)
- Obligation to obtain the status of “authorised declarant”
- Purchase CBAM certificates corresponding to the tonnes of embedded CO₂
- Price linked to the EU ETS (e.g. quarterly average of auctions)
- Deduction of carbon costs already paid in the country of origin
The sale of certificates will start from 1 February 2027. More information in EU Regulation 2025/2083: https://eur-lex.europa.eu/legal-content/IT/TXT/?uri=CELEX:32025R2083
VIPA’s approach
- Compliance: The application for CBAM authorised declarant status for VIPA has been submitted and we are awaiting feedback from the relevant authority, which in Italy is MASE, the Ministry of the Environment and Energy Security.
- Transparency: we will communicate any changes resulting from CBAM
- Sustainability: we continuously look for suppliers with the lowest environmental impact
- Customer support: we will provide our customers with information on these issues should there be any relevant developments
Frequently asked questions (FAQ)
Is CBAM a tax?
It is a mechanism similar to a tax, but with environmental objectives. It is not a customs duty, but a system designed to rebalance the carbon price between EU and non-EU goods.
Which countries are exempt?
Norway, Switzerland, Iceland and Liechtenstein are exempt, as they are already subject to carbon pricing systems compatible with the EU ETS.
Are screws and fasteners included?
Yes, all products classified under CN code 7318 (screws, bolts, etc.) are included.
Will there be price increases?
At present, it is not yet possible to determine the cost of the certificates precisely. However, based on the information currently available, it is reasonable to expect that the introduction of this mechanism will lead to a gradual increase in import costs, linked to the purchase of CBAM certificates and the resulting rise in final prices of the affected products. VIPA is committed to reducing the impact on its customers as much as possible.
All the information provided is updated as of this date.
