EU Carbon Border Adjustment Mechanism (CBAM): Guide for Importers
Updated 2026-08-03
The EU Carbon Border Adjustment Mechanism (CBAM) is a carbon tariff on imports of carbon-intensive goods to prevent carbon leakage. Since October 2023, importers must report embedded emissions in covered goods. From January 2026, importers must purchase CBAM certificates corresponding to the carbon price that would have been paid in the EU. Currently covers iron/steel, cement, aluminium, fertilizers, electricity, and hydrogen.
Primary sources
This page is grounded in the primary materials below. Rules change, so open the source and confirm the current version before acting.
FAQ
What products are covered by CBAM?+
CBAM currently covers six sectors: iron and steel, cement, aluminium, fertilizers, electricity, and hydrogen. The European Commission may expand the scope to other goods at risk of carbon leakage. The specific CN (Combined Nomenclature) codes covered are listed in Annex I of the CBAM Regulation.
What are the CBAM reporting obligations during the transitional period?+
During the transitional period (October 2023 to December 2025), EU importers must submit quarterly CBAM reports detailing the total quantity of goods imported, their embedded emissions, and any carbon price paid in the country of origin. Reports are due one month after each quarter end. No financial payments are required during this phase.
How will CBAM certificates work from 2026?+
From January 2026, authorized CBAM declarants must purchase CBAM certificates from national authorities. The price of certificates is linked to the EU Emissions Trading System (ETS) allowance price. Declarants must surrender certificates annually covering the embedded emissions in their imports, minus any carbon price already paid in the country of origin.
Does CBAM affect small e-commerce shipments?+
CBAM has a de minimis threshold: consignments with a value below €150 are exempt from CBAM obligations. Additionally, CBAM only applies to goods in the six covered sectors. Most consumer goods sold by e-commerce sellers (electronics, clothing, household items) are not currently covered by CBAM.
How do I register as a CBAM declarant?+
Importers of CBAM goods must apply for authorization as CBAM declarants through the CBAM transitional registry. You need an EORI number and must register with the competent national authority in the EU member state where you are established. The registration process includes providing information about your import activities and the covered goods.
Can I deduct carbon prices paid in the country of origin?+
Yes, if carbon pricing has been paid in the country where the goods were produced (e.g., a carbon tax or emissions trading system), this can be deducted from the CBAM certificate obligation. You must provide verified evidence of the carbon price paid. This deduction only applies to actual carbon costs, not subsidies or other incentives.