CBAM makes importers pay for the carbon embedded in certain goods, so EU producers paying the EU ETS carbon price are not undercut and emissions do not simply move abroad.
Which goods
Cement, iron and steel, aluminium, fertilisers, electricity and hydrogen, including some downstream products made from them.
Who is in scope
Since the 2025 simplification, an importer is only covered if it brings in more than 50 tonnes of CBAM goods a year (electricity and hydrogen are treated separately). Above that, you need to be an authorised CBAM declarant before you import.
The timeline
- 2023 to 2025: transitional period. Quarterly reports only, no payment.
- From 1 January 2026: definitive period. Imports start to carry a cost.
- February 2027: CBAM certificates go on sale.
- 30 September 2027: first annual declaration and surrender of certificates for 2026 imports.
How the cost is calculated
Embedded emissions x certificate price, minus any carbon price already paid in the country of origin and adjusted for the free allocation EU producers still receive. Free allocation phases out gradually to 2034, so the CBAM cost rises over time. In 2026 the certificate price is set quarterly from EU ETS auction prices; for Q3 2026 it was €82.32 per tonne.
The data problem
The hardest part is getting actual embedded-emissions data from producers outside the EU. Default values are available but are designed to be unattractive, so supplier engagement matters.
Last checked 13 October 2026. Educational content, not legal advice.