✪ Member Briefing: The EU Carbon Border Adjustment Mechanism 

Executive Summary 

The European Union’s Carbon Border Adjustment Mechanism (CBAM) came into effect on 1 January 2026. It puts a carbon price on imports in six sectors (cement, iron and steel, aluminium, fertilisers, electricity and hydrogen), pegged to the EU Emissions Trading System (ETS) allowance price.  

For the biogas sector, CBAM presents two principal commercial opportunities. Although biogas, biomethane and digestate are not directly covered by the mechanism, changes to the economics of synthetic nitrogen fertiliser and ammonia production could strengthen the case for renewable gas and nutrient recovery. 

The WBA policy analysis introduces the elements of the mechanism, its application beyond the EU and the impacts on the biogas sector.