The EU Carbon Border Adjustment Mechanism (CBAM) puts a carbon cost on certain imports so that they are treated like goods produced inside the EU. If you sell these products into the EU, your buyers will ask you for emissions data.
Which goods are covered
Iron and steel, aluminium, cement, fertilizers, hydrogen and electricity, including many downstream products such as screws, bolts and certain steel and aluminium articles. Coverage is defined by customs codes.
How it has been phased in
A transitional period from October 2023 required importers to report the embedded emissions of covered goods without paying. The definitive period began in January 2026: imports must be made by authorised CBAM declarants, who will need to surrender CBAM certificates corresponding to the emissions embedded in the goods. A simplification adopted in 2025 exempts importers bringing in small annual quantities. Check the current rules and dates, as details continue to be refined.
What suppliers should prepare
- Installation-level emissions data for the goods supplied, calculated using the EU methodology.
- Information on any carbon price already paid in the country of production.
- Clear product identification so that customs codes and emissions data match.
Why it matters commercially
Buyers will compare offers on price plus carbon cost. Suppliers who can provide verified, product-specific emissions data are easier to buy from than those who cannot.
This is general information, not legal advice. For trades into the EU, see the country guides or talk to TP4.
General information, not legal, tax or financial advice. Updated October 2026.