CBAM Financial Phase begins January 2026
What is CBAM?
The Carbon Border Adjustment Mechanism is the EU's carbon tariff on imported goods. Importers must pay for the embedded carbon in products from outside the EU—or face punitive default values.
Applies to steel, aluminum, cement, fertilizers, hydrogen, electricity
Default values assume the worst-case emissions
Actual verified data = lower costs
Cost Impact
Default Values€85+/tonne
Verified Actuals€40-60/tonne
Potential savings: 30-50%
CBAM Covered Sectors
Current scope with more sectors planned post-2026
Iron & Steel
CN 72
Aluminum
CN 76
Cement
CN 2523
Fertilizers
CN 3102-3105
Hydrogen
CN 2804
Electricity
CN 2716
CBAM Compliance Checklist
1
Register as Authorized CBAM Declarant2
Collect actual emissions from suppliers3
Calculate embedded emissions per product4
Purchase CBAM certificates quarterly5
Submit verified annual declaration