The EU’s carbon border adjustment mechanism (CBAM), designed to limit overseas carbon leakage, has been expanded to cover hydrogen and various products that could use the energy carrier.

As of 1 January, hydrogen, electricity, fertilisers, aluminium, iron and steel, and cement are subject to CBAM fees as the bloc looks to cut its supply chain emissions, despite protests from China, the US, and others.

CBAM is the EU’s tool to price the embedded emissions of carbon-intensive goods produced outside of the EU. It is hoped to encourage non-EU countries to decarbonise industries, while also generating revenues for clean technology projects.

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