CBAM
Carbon Border Adjustment Mechanism
The CBAM (Carbon Border Adjustment Mechanism, Regulation (EU) 2023/956) puts a carbon price on certain goods imported into the EU, equivalent to what EU producers pay under the EU Emissions Trading System.
It covers cement, iron and steel, aluminum, fertilizers, hydrogen and electricity. A reporting-only transitional period ran from October 1, 2023 to December 31, 2025. The definitive period started on January 1, 2026, with a threshold of 50 tonnes of covered goods per importer per year (hydrogen and electricity excepted).
Authorized CBAM declarants buy certificates for the emissions embedded in their imports. Sales of certificates for 2026 imports open on February 1, 2027, and the first annual declaration and surrender of certificates is due by September 30, 2027. Importers need emissions data from their non-EU suppliers, which is where the work starts.