- The EU’s Carbon Border Adjustment Mechanism (CBAM) starts January 1, 2026, requiring certain importers to report and pay taxes on carbon emissions embedded in imported goods.
- Importers of over 50 tonnes of CBAM goods must apply for authorized CBAM declarant status before importing, with a final application deadline of March 31, 2026.
- CBAM covers aluminum, cement, electricity, fertilizers, hydrogen, and iron and steel.
- Importers must buy CBAM certificates, priced according to the EU Emissions Trading System, and declare emissions annually; certificates for 2026 imports will be sold from February 1, 2027.
- If a carbon price was already paid in the country of production, importers can deduct that amount from their CBAM obligation.
Source: answerconnect.cch.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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