Scope
Importers of cement, iron & steel, aluminium, fertilisers, electricity, hydrogen above the 50-tonne annual mass threshold
EU · regulation
Carbon Border Adjustment Mechanism (CBAM)
Regulation (EU) 2023/956, amended by Regulation (EU) 2025/2083
In forceApplies 2026-01-01
Penalties
Penalties of €10–50 per tonne for excess unreported emissions (transitional); certificate shortfall penalties in definitive regime
Last verified
2026-08-22
In plain language
What this law does
Prices the embedded carbon of covered imports at the EU ETS price, mirroring the phase-out of free allowances. The definitive regime runs from 1 January 2026 with authorised-declarant status, embedded-emissions verification and certificate surrender; the 2025 simplification introduced a single 50-tonne de-minimis threshold exempting ~90% of importers.
Core obligations
Authorised CBAM declarant status; quarterly then annual declarations; embedded direct (and indirect where applicable) emissions per installation; accredited verification; certificate purchase and surrender; default values where data unavailable
Dictionary
Terms defined in this law
- GoodsCBAM
- Embedded emissions* (3(4))CBAM
- Direct embedded emissions* / *indirect embedded emissionsCBAM
- CBAM certificate* (3(10))CBAM
- Authorised CBAM declarant* (3(15))CBAM
- CBAM declaration* (3(16))CBAM
- Simple goodsCBAM
- Default valuesCBAM
- Carbon price paid in a third countryCBAM
- 50-tonne de minimisCBAM
- Certificate price (Art. 21)CBAM
- CBAM Registry (DG TAXUD)CBAM
- Common central platform (Art. 20)CBAM
- Accredited third-party verifierCBAM
- PenaltyCBAM
- First annual declaration + surrenderCBAM
- Downstream extensionCBAM
Claims