CBAM in one page

The EU Carbon Border Adjustment Mechanism, established by Regulation (EU) 2023/956, is a carbon pricing instrument that targets the embedded emissions of selected goods imported into the EU. It is intended to mirror, at the border, the carbon price that EU producers pay under the EU Emissions Trading System, and to address the risk of carbon leakage as EU climate ambition increases. What it covers. Cement, iron and steel, aluminium, fertilisers, electricity and hydrogen, defined by reference to specific CN codes in Annex I to the Regulation. Whether a particular product is in scope depends on its CN code at the moment of import into the EU. Who is obliged. During the transitional period (1 October 2023 to 31 December 2025), the EU importer or an indirect customs representative submitted quarterly CBAM reports. From the definitive period (1 January 2026 onwards), only an authorised CBAM declarant, or an indirect customs representative acting in that capacity, may import CBAM goods. The first annual CBAM declaration for 2026 imports is due by 31 August 2027. What is paid. Authorised CBAM declarants buy CBAM certificates, priced at the weekly average of EU ETS auction closing prices, and surrender certificates equal to the embedded emissions of the imported goods. A deduction is available, on evidence, for any carbon price effectively paid in the country of origin. Who is exempt. The simplification package (Regulation (EU) 2025/2083) introduced a 50 tonne mass-based de minimis per importer per year for cement, fertilisers, iron and steel, and aluminium. Imports from EEA countries and Switzerland are excluded by virtue of their linked carbon pricing systems. Where to start. Map your imports against Annex I CN codes, confirm authorisation status well before the first 2026 import, collect installation-level emissions data from non-EU operators using the Commission template, and start a forward view of certificate cost based on projected volumes and ETS prices.