- The EU Carbon Border Adjustment Mechanism (CBAM) imposes a carbon price on embedded emissions in certain imported goods, with the definitive regime starting on 1 January 2026 and involving authorisation, annual declarations, and certificate obligations.
- CBAM applies only to specified goods in covered sectors such as iron and steel, aluminium, cement, fertilisers, electricity, and hydrogen; broad purchasing descriptions are not enough to determine scope.
- A new cumulative exemption threshold applies: 50 tonnes of net mass per importer per calendar year for relevant goods, excluding electricity and hydrogen. If exceeded, CBAM applies to all relevant imports for the full year, including pre-threshold imports.
- Importers must reconcile purchasing and customs records at importer level, retaining goods codes, quantities, origin, and customs references to ensure the correct imports are included in emissions calculations.
- The authorised CBAM declarant is responsible for identifying covered imports, calculating embedded emissions under the applicable methodology, retaining supporting data, and accounting for adjustments such as EU ETS free allocation and eligible carbon prices paid abroad.
Source: rtcsuite.com
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