What is CBAM?
The EU’s Carbon Border Adjustment Mechanism (CBAM) is the tool to put a price on the carbon emitted during the production of carbon intensive goods that are entering the EU. The CBAM will help reduce the risk of carbon leakage while encouraging producers in non-EU countries to green their production processes and countries to
introduce carbon pricing measures.
CBAM is the European Union’s mechanism for applying a carbon price to the embedded emissions of certain
carbon-intensive imports entering the EU, including electricity imported from non-EU countries.
From 1 January 2026, electricity imports into the EU that fall within CBAM scope must be managed by an authorised CBAM declarant. This may be the importer or, where applicable, an indirect customs representative. Authorised CBAM declarant status means being officially recognised by the relevant EU Member State authority and registered within the CBAM Registry.
From 1 January 2026, the definitive EU CBAM period began. During this period, authorised CBAM declarants must report the embedded emissions associated with imported electricity and surrender the corresponding number of CBAM certificates each year. Unlike some other CBAM goods, electricity is not covered by the general 50-tonne
de minimis exemption and remains within scope regardless of volume.
CBAM Reporting Dates
The first CBAM declaration for the definitive period must be submitted by 30 September 2027. This declaration will cover electricity imports made during the 2026 calendar year.
CBAM Certificates
Authorised CBAM declarants are required to surrender CBAM certificates corresponding to the embedded emissions in their imported electricity.
CBAM certificates will first be available to purchase from 1 February 2027. During 2026, the EU will publish
quarterly CBAM certificate prices, with prices calculated using EU ETS auction prices. For the price of CBAM
certificates, please see the EU CBAM Price of CBAM certificates - Taxation and Customs Union
For more information, please see the EU’s website Carbon Border Adjustment Mechanism - Taxation and Customs Union