CBAM 2026: obligations, deadlines and impacts for importers

The entry into force of the Carbon Border Adjustment Mechanism (CBAM) represents one of the most significant regulatory developments in the European Union’s path toward decarbonisation and the safeguarding of industrial competitiveness. With Regulation (EU) 2023/956, the European Commission is introducing a carbon border adjustment system designed to profoundly reshape the rules governing the import of goods with high embedded emissions.

Starting from 1 January 2026, CBAM will move from the transitional phase to its definitive regime, imposing new obligations, enhanced traceability and stricter monitoring of the emissions embedded in imported products. This analysis examines the overall regulatory framework, the required obligations and the operational implications for European businesses.

Objectives and Rationale of CBAM

CBAM was introduced as part of the European Green Deal as a tool to counter carbon leakage—namely, the relocation of carbon-intensive production to countries with more lenient environmental regulations. The mechanism introduces a carbon price on imports proportional to the CO₂ emitted during the production of the good, with the aim of creating fair competitive conditions between EU and non-EU producers.

The price of future CBAM certificates—which importers will be required to purchase and surrender annually—is aligned with the value of the EU ETS market, the main reference for EU policies aimed at reducing emissions. The principle is straightforward: those who produce or import carbon-intensive goods must bear a cost consistent with the European level of carbon pricing.

In addition to contributing to the EU’s climate targets for 2030 and 2050, CBAM also encourages greater transparency and improved data quality regarding emissions embedded in industrial products.

Transitional Phase (2023–2025): A Testing Period for Businesses and Authorities

Since 1 October 2023, the CBAM transitional regime has been in force. Although it does not yet require the purchase of certificates, it introduces strict reporting obligations. Importers must submit a CBAM report within one month after the end of each quarter, containing:

• the volume of imported goods falling within the CBAM scope

• the embedded emissions of the products

• any carbon price applied in the country of production

• information on the production process, where available

When primary data is not provided by the non-EU producer, default values prepared by the Commission may be used. However, this option will gradually be restricted with the entry into the definitive regime, making stronger cooperation with foreign suppliers and enhanced internal data management capabilities essential.

The final report of the transitional phase, relating to Q4 2025, must be submitted by 31 January 2026.

CBAM Becomes Fully Operational in 2026: Obligations and New Requirements

With the transition to the definitive regime on 1 January 2026, CBAM introduces several additional obligations requiring companies to revise their internal processes.

Mandatory Authorisation for Importers

Operators importing more than 50 tonnes per year of CBAM-covered goods must obtain the status of Authorised CBAM Declarant. For electricity and hydrogen, the obligation applies regardless of quantity.

Applications must be submitted to the MASE by 31 March 2026, and the authority will have up to 120 days to assess them. The evaluation will consider:

• financial soundness of the company

• adequacy of internal control systems

• ability to monitor and verify the embedded emissions of imported products

During the assessment period, imports may continue, provided that the submission of the application is indicated in customs declarations.

Possible Penalties for Lack of Authorisation

Failure to submit the application by the deadline may result in:

• administrative penalties

• notifications to the competent authorities

• in more serious cases, the blocking of goods at customs until regularisation occurs

Scope of Application: Goods Subject to CBAM

CBAM applies to imports from third countries not linked to the EU ETS. The product categories included, listed in Annex II of Implementing Regulation (EU) 956/2023, comprise goods produced through energy-intensive and emission-intensive industrial processes. The main ones include:

• iron and steel

• aluminium

• cement

• fertilisers

• electricity

• hydrogen

For many of these categories, CBAM considers not only direct emissions (Scope 1) but also indirect emissions (Scope 2), where relevant.

This approach makes emissions monitoring more complex than traditional customs requirements, demanding new information flows and close collaboration with foreign producers.

CBAM Certificates: Starting in 2027

The certificate system, in its full form, will become effective on 1 February 2027, when Member States will begin selling CBAM credits through a dedicated EU platform.

How the Certificate Mechanism Works

Importers will be required to:

• purchase certificates in quantities proportional to the embedded emissions of the goods imported during the previous year

• surrender the required number of certificates annually

• record all operations in the CBAM Registry

• retain documentation supporting the declared data

The price of certificates will be updated weekly and aligned with the EU ETS market value. For imports made in 2026, however, the calculation will be based on the quarterly average of EUA prices.

Flexibility Measures

The regime includes several corrective tools, such as:

• the possibility for Member States to repurchase excess certificates

• recognition of carbon pricing already paid in the country of origin, provided that it is considered equivalent to EU standards

CBAM and Business Implications: Why Preparation Is Essential

CBAM is not merely an additional administrative requirement; it represents a profound transformation of how companies manage the import of goods with high embedded emissions. Businesses must implement reliable data-collection systems, strengthen internal controls, verify the accuracy of customs codes and establish clear, continuous information flows with non-EU suppliers.