Carbon Border Adjustment Mechanism

The Carbon Border Adjustment Mechanism (CBAM) is the EU's tool to put a fair price on carbon emitted during the production of carbon-intensive goods that are entering the EU, and to encourage cleaner industrial production in non-EU countries.

CBAM will apply in its definitive regime from 2026, with a transitional phase of 2023 to 2025. This gradual introduction is aligned with the phase-out of free allowances under the EU Emissions Trading System (ETS) to support the decarbonisation of EU industry.

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  EU importers or their indirect customs representatives importing more than the single mass-based threshold of 50 tonnes of CBAM goods into the EU will have to apply for the status of authorized CBAM declarants. They will buy CBAM certificates from the national authorities in their country of establishment. The price of the certificates will be calculated based on auction price of EU ETS allowances expressed in €/tonne of CO2 emitted, as a quarterly average in 2026 and as a weekly average from 2027 onwards.

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  EU importers will declare the emissions embedded in their imports and surrender the corresponding number of certificates each year.

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  If importers can prove that a carbon price has already been paid during the production of the imported goods, the corresponding amount can be deducted.

All implementing and delegated acts adopted in the December package are available at the following link:

CBAM Legislation and Guidance

Please refer to the Guidelines for Operational Procedures for 1 January 2026, available in the following document:

• General publications
• 21 December 2025

CBAM Goes Live: Guidelines for Operational Procedures for 1 January 2026

Reference: Taxation and Customs Union, European commission