Carbon Border Adjustment Mechanism (CBAM)

Regulation (EU) 2023/956 for Swede-Wheel AB & Hilfa AB 
Hillerstorp, Sweden, 4th December 2025 

 

We would like to inform you about an important change in EU legislation – the Carbon Border Adjustment Mechanism (CBAM), Regulation (EU) 2023/956. It enters fully into force on 1 January 2026 and introduces increased costs for products manufactured outside the EU with high carbon emissions. 

 

What is CBAM? 
CBAM is the EU’s new system for placing a carbon price on certain imported goods such as cement, iron & steel, aluminium, fertilisers, hydrogen, and electricity. Reporting is mandatory for importers within the EU. It forms part of the EU’s climate policy and aims to reduce global carbon emissions while ensuring fairer competition between producers inside and outside the EU. 

During the transitional period (2023–2025), companies have only been required to report. From 2026, importers must also purchase CBAM certificates corresponding to the carbon emissions generated during the production of certain goods. 

 

Impact on our industry 
As CBAM covers carbon-intensive materials such as aluminium, iron, and steel – raw materials central to wheel and component manufacturing – this may lead to: 

  • Direct cost increases for goods imported from outside the EU. 

  • Indirect cost increases for products manufactured within the EU but containing imported inputs. 

  • Volatile costs, as the price of carbon certificates is set on a marketplace and will vary over time. 

  • Indications that European material manufacturers may take advantage of the situation to raise prices 

 

Our work 
Swede-Wheel has reported in line with current regulations since Q4 2024. This means we already have established routines and processes for quarterly reporting. For you, this means no major changes are expected going forward, apart from the potential cost impact mentioned above. 

We are working long-term to reduce our climate footprint and ensure reliable deliveries. This includes: 

  • Developing supply chains with lower carbon impact. 

  • Continuing to manufacture in Sweden, where we can maintain stronger control over both quality and sustainability. 

  • Maintaining close dialogue with our suppliers and partners to meet future requirements. 

 

Next steps 
Throughout 2026, we will continue to keep you informed about how CBAM affects our products and pricing. We recommend that you already begin to consider these changes in your planning and communication with customers. 

For more information, you can read more here: 
European Commission – CBAM information 

 

We are here to support you throughout this transition. Please do not hesitate to contact us if you would like to discuss how CBAM may affect your business. 

 

Contact 

Albin Björhag 

Albin Björhag 

Supply chain manager 

+46 (0)370-63 05 07 

albin.bjorhag@swede-wheel.se