Which sectors does the new mechanism cover and why were they chosen?
The CBAM initially applies to imports of goods in the following sectors:
- Cement
- Iron and Steel
- Aluminium
- Fertilisers
- Hydrogen
- Electricity
These sectors were selected following specific criteria, in particular their high risk of carbon leakage and high emission intensity which will eventually – once fully phased in – represent more than 50% of the emissions of the industry sectors covered by the ETS. In the future, the CBAM may be extended to other ETS sectors.
Source: EC’s Questions and Answers on CBAM