Carbon Border Adjustment Mechanism (CBAM)
The CBAM implementation period began on 1 January 2026, meaning that authorised declarants must declare each year the quantity of goods imported into the EU during the previous calendar year, submitting a number of CBAM certificates corresponding to the associated greenhouse gas emissions.
Key dates for the CBAM
- 1 January 2026: start of the CBAM implementation period.
- 31 March 2026: deadline for continuing to import goods on a provisional basis, provided that the application has been submitted and is in the process of being resolved.
- 30 September 2027: deadline for declaring imports and emissions for the previous calendar year, 2026. This will continue each year.
Key CBAM concepts
CBAM Registry:
A standardised and secure electronic database that will contain information relating to CBAM accounts, declarations, applications and registrations.
CBAM authorised declarant:
Natural or legal person authorised to import goods subject to CBAM into the customs territory of the European Union. From 1 January, only an authorised declarant may import CBAM goods.
CBAM declaration:
This will be made annually, no later than 30 September each year from 2027 onwards. It will contain the calculation of verified emissions from imports of goods.
CBAM certificate:
Instrument that importers or indirect customs representatives will use to pay for the implicit emissions of the goods they import.
Single threshold based on mass:
Importers who, in aggregate, import up to a maximum of 50 tonnes per importer per year will be exempt from the obligations. Prices will be calculated by the European Commission using the average Union prices through the Emissions Trading Registry (ETR).
Goods subject to the CBAM:
- Cement
- Electricity
- Fertilisers
- Iron and steel
- Aluminium
- Hydrogen
Each category includes a variety of products determined by legislation.
Why the CBAM is important for the EU
The CBAM addresses the risk of carbon leakage, which occurs when companies in certain industrial sectors move their production to other countries, or when imports from those countries replace equivalent products that are less greenhouse gas intensive.
The aim is to ensure compliance with the Paris agreements and achieve the greenhouse gas emission reduction targets for 2050.