regulations
Importing steel, aluminium or cement from outside the EU? From 2026, you'll pay for embedded CO₂ emissions. Learn how CBAM works and what it costs.
CBAM (Carbon Border Adjustment Mechanism) is the EU's carbon border tax that charges for CO₂ emissions embedded in imported goods. From 1 January 2026, importers of steel, aluminium, cement, fertilisers, hydrogen and electricity from non-EU countries must purchase CBAM certificates - priced at the EU ETS allowance rate (currently €75.36 per tonne of CO₂ (EC Q1 2026, published 2026-04-07; basis: quarterly average of EU ETS auction clearing prices on EEX (Art. 21 as amended by Omnibus 2025/2083))).
CBAM levels the playing field between European producers (who already pay for emissions under ETS) and importers who previously could buy cheaper from countries with no carbon pricing. It is part of the EU's climate policy aiming for climate neutrality by 2050.
Calculate your estimated import costs: CALCULATOR. Find your goods' CN code: TARIFF FINDER.
CBAM applies to importers bringing in more than 50 tonnes (this threshold does NOT apply to imports of electricity and hydrogen — these categories are covered by CBAM with no de minimis threshold) of covered goods per year. It covers 6 high-emission sectors:
Small importer exemption: From 20 October 2025, importers bringing in less than 50 tonnes per year of CBAM goods (steel, aluminium, cement, fertilisers) are fully exempt. This exemption covers approximately 90% of importers (182,000 companies in the EU). Note: hydrogen and electricity are not covered by this exemption.
Excluded countries (Annex III, Reg. 2023/956): CBAM obligations do not apply to imports from: Iceland, Liechtenstein, Norway, Switzerland (EFTA states participating in EU ETS or linked ETS) and the following special territories: Büsingen, Helgoland, Livigno, Ceuta and Melilla. Importers from these jurisdictions do not need CBAM registration or certificates for goods listed in Annex I.
During the transitional period, importers submitted quarterly CBAM reports through the Transitional Registry - no payments required. This was time to collect data from suppliers and prepare for the definitive phase.
From 1 January 2026, CBAM entered its definitive phase.
From 1 January 2026, importers must:
CBAM certificate sales will begin on 1 February 2027 - certificates for 2026 emissions will be priced based on the 2026 quarterly average EUA price. From 2027, pricing will be weekly.
CBAM liability = (volume [t] × embedded emissions [tCO₂e/t]) × certificate price [€/tCO₂e] × CBAM factor − deductions [€]
The CBAM factor reflects the gradual phase-out of free allowances for EU producers:
| Year | CBAM Factor | EU Free Allowances |
|---|---|---|
| 2026 | 2.5% | 97.5% |
| 2027 | 5% | 95% |
| 2028 | 10% | 90% |
| 2029 | 22.5% | 77.5% |
| 2030 | 48.5% | 51.5% |
| 2034 | 100% | 0% |
If a carbon tax or CO₂ price has been paid in the country of production, you can deduct it from your CBAM liability (documentation required).
Calculate your costs: CALCULATOR
Assumptions: EUA price = €75.36/tCO₂ (EC Q1 2026)
CBAM certificate sales start date: sales of CBAM certificates on the common central platform begin on 1 February 2027 (Reg. 2025/2083 Omnibus). Window for purchase and surrender of certificates for year 2026: 1 February 2027 to 30 September 2027.
e, no deductions, 2026 CBAM factor = 2.5%.Note: In 2034 at full CBAM implementation (100%), these amounts will be €8,000 and €12,800 respectively.
Currently - mainly raw materials and semi-finished products. The scope covers steel, aluminium, cement, fertilisers, hydrogen and electricity. From 2028, expansion to downstream products is planned.
During the transitional period - quarterly. In the definitive phase, you submit an annual declaration by 30 September of the year following importation (first declaration for 2026 by 30 September 2027).
You can use Commission default values. However, these are typically higher than actual emissions. In parallel, work on obtaining real data from suppliers - this will reduce certificate costs.
Yes. An EORI number is required to register as an authorised CBAM declarant and to import goods covered by the mechanism.
Yes. If your supplier paid a carbon tax or CO₂ price in their country, you can deduct this amount from your CBAM liability. Documentation proving payment is required.
| Legal act | Scope |
|---|---|
| Regulation (EU) 2023/956 of 10 May 2023 | Establishes the CBAM |
| Regulation (EU) 2025/2083 of 8 October 2025 | CBAM simplifications (50 t threshold, deadlines) |
| Implementing Regulation (EU) 2023/1773 | Reporting rules for transitional period |
| Directive 2003/87/EC (EU ETS) | Emissions trading system - price benchmark |
Official sources:
This article is for informational purposes only and does not constitute legal or tax advice. Legal status as of May 2026.
