The final phase of the CBAM comes into force

Since 1 January 2026, the EU's Carbon Border Adjustment Mechanism (CBAM) has entered its final phase.

Carbon border adjustment mechanism

In its communication of 11 December 2019 entitled ‘The European Green Deal’, the Commission set out a new growth strategy aimed at addressing climate and environmental challenges and achieving the objectives of the Paris Agreement.

The sectors subject to the CBAM are: cement, iron and steel, aluminium, fertilisers, hydrogen and electricity. Annex I to Regulation (EU) 2023/956 of the European Parliament and of the Council of 10 May 2023 establishing a Carbon Border Adjustment Mechanism details the goods that fall within the scope of the mechanism.

The common characteristics of these sectors are:

They produce significant greenhouse gas emissions.

They generate intense commercial activity.

They are susceptible to carbon leakage, i.e. due to the costs arising from environmental policies, they relocate their production to countries with more lax or non-existent carbon pricing mechanisms.

Obligation: Importers of iron, steel, cement, aluminium, fertilisers, electricity and hydrogen must now obtain prior authorisation and start purchasing CBAM certificates to cover their emissions.

Cost: The price of these certificates is linked to the EU's weekly emissions allowance auctions.

Procedure: Automated account validation is now carried out through the Tax Agency's CSW-CERTEX system.

Exemptions. The CBAM does not apply, among others, to:

Imports from countries covered by the EU ETS or those that have a fully linked national ETS.

Goods used for military activities.

Goods originating in third countries and territories included in Annex III, point 1: Iceland, Liechtenstein, Norway, Switzerland, Büsingen, Heligoland, Livigno, Ceuta and Melilla.

NEW SINGLE THRESHOLD BASED ON MASS and DE MINIMIS EXEMPTION.