What is CBAM and how does it affect cross-border sellers?

Last updated: 2026-08-02·Verified: 2026-08-02

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📋 Direct Answer

CBAM (Carbon Border Adjustment Mechanism) is an EU regulation requiring importers to report and eventually pay for the carbon emissions of imported goods. Since October 2023: reporting-only phase. From 2026: financial obligations begin (must purchase CBAM certificates). Affected products: cement, iron/steel, aluminium, fertilisers, electricity, hydrogen. Currently does NOT apply to most consumer goods, but may expand. Cost: CBAM certificate price = EU ETS carbon price (~€50-80/tonne).

2
Requirements
€50-80/tonne CO2
Est. Total Cost
Reporting now, payments from 2026
Timeline

Item by Item

If applicableCBAM Reporting (Now)
Free (reporting only)Quarterly reports
  1. 1Register as CBAM declarant with European Commission
  2. 2Report embedded carbon emissions of imported goods
  3. 3Submit quarterly CBAM reports via CBAM Transitional Registry
If applicableCBAM Payments (2026+)
€50-80/tonne CO2From 2026
  1. 1Purchase CBAM certificates from EU
  2. 2Surrender certificates corresponding to embedded emissions
  3. 3Certificate price linked to EU ETS carbon price

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Sources

  • EU CBAM Regulation (EU) 2023/956
  • European Commission CBAM guidance

Disclaimer: This page is for informational purposes only and does not constitute legal or tax advice. Consult a professional for your specific situation.