CBAM (Carbon Border Adjustment Mechanism): what it is, who it applies to, and how to be ready (2025–2026)
From 1 January 2026, CBAM moves from “reporting only” to actual payment via CBAM certificates. You must register, calculate embedded emissions, and purchase & surrender certificates annually at a price that mirrors the EU ETS. The EU is working on simplifications (including relief for smaller importers) and is exploring indirect emissions and downstream expansion, so the scope may tighten. Put the essentials in place now: data flows, correct CN/HS codes, supplier agreements, and budgeting.
What CBAM stands for (and why it exists)
CBAM = Carbon Border Adjustment Mechanism. It’s the EU’s way to put a carbon price on certain carbon-intensive imports so EU producers who already pay for carbon under the EU ETS aren’t undercut. In short: if you import covered goods into the EU, you’ll need to account for the embedded CO₂e in those goods.
When does CBAM come into effect?
CBAM started with a transitional reporting phase (no payment; quarterly reporting). The definitive phase begins in 2026, when a financial obligation is added: you buy and surrender CBAM certificates based on the embedded emissions of your imports.
Which goods and HS codes are in scope?
Expect the core set: iron & steel, aluminium, cement, fertilizers, electricity, hydrogen (plus some precursors). Scope is defined via CN/HS codes. Your first job is mapping your product portfolio to the right codes; if the code is in scope, the item is in scope.
Who does CBAM apply to? Who needs to report—and who pays?
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EU importers/“declarants” are responsible for reporting and (from the definitive phase) paying via CBAM certificates.
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If you’re a customs broker or logistics provider, you may support the process, but the authorised CBAM declarant is the accountable entity.
How CBAM works (in one flow)
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Classify goods to the proper CN/HS code.
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Collect data from non-EU suppliers on direct process emissions (and, where required, defined indirects).
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Calculate embedded emissions (own data or allowed defaults).
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Report during the transitional phase; buy & surrender CBAM certificates in the definitive phase.
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Adjust: if a verified, recognised carbon price was paid outside the EU, part of the due amount may be offset.
How CBAM is calculated
CBAM cost ≈ Embedded emissions (tCO₂e) × CBAM certificate price, minus any recognised third-country carbon price. Emissions can be based on supplier data or regulated default values if data is missing.
How to register / where to buy CBAM certificates
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Create/validate your entity in the CBAM registry (national access, EU-wide framework).
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Certificates are purchased through your CBAM account. They track surrender, not speculative trading.
How to fill a CBAM report (practical checklist)
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Correct CN/HS code for each line item
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Country of origin + supplier details
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Quantity and product form (e.g., semi-finished vs finished)
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Embedded emissions per methodology (own data or default)
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Any recognised carbon price already paid
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Supporting evidence (data sources, verification where required)
What CBAM certificates are (and are not)
They’re compliance units you buy and surrender; they are not exchange-traded financial products. Think of them as a matched “receipt” for the carbon price owed on your imports.
How BF Global supports CBAM compliance
The CO₂ emissions of your products and suppliers now directly impact your cost price and your compliance obligations. That demands close collaboration across your supply chain.
As a logistics partner with an in-house customs department, BF Global helps you meet all CBAM reporting requirements. You’ll receive periodic overviews of every (CBAM) shipment booked via BF Global. These reports can be used directly for your CBAM declarations—so you stay fully compliant.
Want to learn more or get started right away? Contact one of our specialists.
CBAM – FAQ
Is CBAM a tax?
Not in the classic sense. It’s a carbon-price adjustment at the border. You don’t pay customs duty; you surrender certificates valued against an EU carbon price.
Is CBAM legit / is CBAM implemented?
Yes—CBAM is established EU law. It is implemented in phases: reporting first, then payment.
Is CBAM delayed?
The reporting phase has been ongoing; the payment obligation starts in 2026. Keep an eye on official updates, but plan for payment readiness.
Which countries have CBAM?
CBAM is an EU mechanism applied to imports into the EU (regardless of exporting country).
Which sectors/products are covered?
Core sectors: iron & steel, aluminium, cement, fertilizers, electricity, hydrogen (plus certain precursors) via CN/HS codes.
Who needs to report / who is responsible?
The authorised EU importer (declarant). Brokers can help, but the declarant carries liability.
How do I calculate emissions if suppliers can’t give data?
Use regulated default values where allowed, and start a supplier-data improvement plan.
How do I report?
Through the CBAM registry on a set schedule (quarterly in the transitional phase), then annual surrender in the definitive phase.
Where do I buy CBAM certificates? Can certificates be traded?
You buy them in your CBAM account. They’re not exchange-traded; they exist for surrender against your own obligations.
What does CBAM money go towards?
Conceptually, CBAM aligns the import carbon price with the EU’s system; revenues support the EU budget and climate policy (details are set in EU public finance rules).
Is CBAM a non-tariff barrier?
It’s framed as a climate policy tool aligned with EU ETS rather than a classic tariff; compliance is tied to verified emissions, not origin.
