The carbon border adjustment mechanism, CBAM (Carbon Border Adjustment Mechanism), is a measure for the EU to achieve its goals for sustainable development and reduced carbon dioxide emissions. CBAM is a way for the EU to ensure that products imported into the Union have been produced in a sustainable manner and that the Union’s own rules for sustainable development are followed.
The goal of CBAM is to reduce the risk of carbon leakage, where companies move carbon-intensive production to countries outside the EU to avoid stricter climate regulations, or where EU products are replaced by more carbon-intensive imported goods. By putting a price on the carbon dioxide emitted in the production of imported goods, CBAM aims to ensure that these products are treated fairly compared to domestic production.
“This is an important step to demonstrate our commitment to reporting carbon footprints and ensuring that our manufacturing units and components meet our standards,” said John Nyman, Key Account Manager and responsible for CBAM at ESMA.
Only around 500 of the 6000 reporting companies in Sweden submitted a first complete CO2 report according to the Swedish Environmental Protection Agency. ESMA has already submitted its second report and by being an early participant in this initiative, ESMA demonstrates its commitment to reducing carbon leakage and promoting sustainability in the manufacturing industry.
“We will continue to actively work with CBAM and apply for the necessary permits to import relevant goods from 2026 to become an official CBAM declarant,” concludes John Nyman.