Bratislav Dzombic

Bratislav Dzombic

What is CBAM? The carbon border rule quietly rewriting European trade

Digital illustration of CBAM at the EU border, with trucks and a cargo ship emitting smoke while imports are scanned for carbon emissions before entering the European market.

CBAM is no longer some Brussels acronym floating above the real economy. Since January 1, 2026, the EU’s Carbon Border Adjustment Mechanism has moved into its definitive phase, putting carbon costs on certain imports and changing the math for exporters, industrial buyers, and electricity traders alike. Here’s what CBAM is, why it exists, how it works, and why the Western Balkans should be paying very close attention.