Key points at a glance
- CBAM has been in its definitive phase since 1 January 2026. Importers of CBAM goods must hold the status of an authorised CBAM declarant and, from 2027, purchase and surrender CBAM certificates for their imports.
- Under the CBAM Omnibus reform, a uniform exemption threshold of 50 tonnes per importer per calendar year applies. Importers below this threshold are exempt, although electricity and hydrogen are excluded regardless of quantity.
- The quality of your suppliers’ emissions data determines your costs. Without reliable data, more expensive default values apply. With good data, you pay only for the actual emissions incurred.
What is CBAM and what does the CBAM Regulation cover?
CBAM stands for Carbon Border Adjustment Mechanism. The legal basis is the CBAM Regulation (EU) 2023/956.
CBAM places a price on CO₂-intensive imports into the EU that corresponds to the CO₂ price a comparable product would bear under the EU Emissions Trading System (EU ETS).
The background to this is the risk of carbon leakage. As long as production within the EU bears CO₂ costs, while imports from third countries do not, this creates a competitive disadvantage for European manufacturers and an incentive to relocate production abroad.
CBAM compensates for this difference at the EU’s external border.
Which goods and sectors does CBAM cover?
CBAM currently applies to imports from six sectors: iron and steel, aluminium, cement, fertilisers, hydrogen and electricity, including certain intermediate products such as cement clinker or unalloyed aluminium.
The determining factor is not the industry, but the specific goods. Whether an import falls under CBAM depends on the CBAM tariff codes, meaning the CN codes listed in the annex to the regulation. If your goods fall outside these codes, there is no CBAM obligation, even if they come from the same sector.
As of 1 January 2026, certain CBAM-related codes must be specified in the import declaration. Correct tariff classification is therefore the first crucial step not only for customs clearance, but also for determining CBAM liability.
Who is affected by CBAM and who is not?
The importer who brings CBAM goods into the EU customs territory, or their indirect customs representative, is liable. Since 2026, the new exemption threshold has been decisive in determining who is affected.
The CBAM Omnibus reform introduced a uniform, volume-based de minimis threshold of 50 metric tonnes of CBAM goods per importer per calendar year. Importers whose total imports remain below this threshold are exempt from CBAM obligations, including registration, reporting and certificate purchases.
According to European Commission estimates, this relieves approximately 90% of importers of these obligations while still covering around 99% of recorded emissions, as the largest volumes are concentrated among a smaller number of importers.
An important exception: the 50-tonne threshold does not apply to electricity and hydrogen. These two product groups remain fully subject to CBAM regardless of the volume imported.
What does CBAM mean for imports from the United Kingdom?
A special case relevant to many European companies is the United Kingdom. Since Brexit, the UK has been considered a third country for CBAM purposes. Therefore, if you source steel or aluminium from the UK, these imports currently fall under CBAM in the same way as purchases from other non-EU countries.
However, the EU and the United Kingdom are negotiating a link between their emissions trading systems. If such an agreement comes into force, goods of British origin could be exempt from CBAM in the future. Until then, UK imports should continue to be included in your CBAM volume calculation.
What are the obligations for EU importers from 2026?
With the start of the definitive phase, the obligations have fundamentally changed. During the transition phase from October 2023 to December 2025, the CBAM reporting obligation was limited to quarterly reporting of embedded emissions, without financial consequences.
From 2026, the following obligations apply.
Registration as an authorised CBAM declarant
Anyone importing CBAM goods above the exemption threshold must first obtain the status of an authorised CBAM declarant. The application is submitted via the CBAM Registry. In Germany, the German Emissions Trading Authority (DEHSt) within the Federal Environment Agency is the competent national authority. In other EU Member States, the competent national authority may differ.
Annual CBAM declaration
Instead of the previous quarterly CBAM reports, an annual CBAM declaration must now be submitted, for the first time by 30 September 2027 for the 2026 import year. This declaration reports the embedded emissions of the imported goods.
CBAM certificates
For the emissions reported in the declaration, corresponding CBAM certificates must be purchased and surrendered. Sales will take place via a central shared platform and begin on 1 February 2027. The first surrender is due by 30 September 2027 for imports made in 2026.
Key CBAM deadlines at a glance
| Period / deadline | What applies |
| October 2023 to December 2025 | Transition phase: reporting requirement only, no certificates |
| Since 1 January 2026 | Definitive phase; CBAM codes mandatory in import declarations; adjustment factor 2.5% |
| From 1 February 2027 | Sale of CBAM certificates via the central platform |
| By 30 September 2027 | First annual CBAM declaration and certificate surrender for the 2026 import year |
| Through 2034 | Gradual increase of the adjustment factor to full application |
The timeline is crucial. For 2026, the payment obligation arises retroactively in 2027. Companies that start preparing late already bear a future obligation for the entire current year. Without a clean data foundation, this can hardly be calculated reliably.
What does CBAM cost and why is good emissions data crucial?
The price of a CBAM certificate is not based on a fixed rate, but on the EU Emissions Trading System. For 2026, it corresponds to the quarterly average of auction prices for EU ETS allowances. From 2027, it will be calculated weekly.
The European Commission published the first reference price for the first quarter of 2026 on 7 April 2026, at EUR 75.36 per tonne of CO₂.
However, importers will not immediately bear the full amount of this sum. CBAM will be introduced in parallel with the phase-out of free allocation in the EU Emissions Trading System. The adjustment factor is 2.5% in 2026 and will gradually increase to full application by 2034. The financial burden will therefore grow significantly over the years.
Data quality is crucial for determining the actual amount. If you can verify the actual emission values of a product as determined by the supplier, you will only pay for those actual emissions.
If reliable data is missing, default values apply. These are generally set conservatively, meaning they tend to be higher than the actual emissions from efficient production. Good data is therefore not an end in itself, but a direct cost lever.
How should importers prepare for CBAM?
Based on practical experience, four steps can be identified that importers should address now.
1. Determine your exposure
Clarify which of your imports fall under the CBAM tariff codes and whether your volumes exceed the 50-tonne exemption threshold. This assessment determines whether and to what extent you are required to register and report.
2. Compile emissions data for each product
Record the embedded emissions for each affected product, ideally product-specific and verified by the manufacturer. These form the basis of your CBAM declaration and directly determine your costs. No data means expensive default values, while good data results in predictable and often lower costs.
3. Contact suppliers early
Your data foundation originates with manufacturers outside the EU. Proactively reach out to your suppliers and clarify whether, and in what format, they can provide the required emissions data. Suppliers without reliable data are becoming increasingly unattractive to importers subject to CBAM.
4. Adapt contracts
Ensure the delivery of reliable emissions data is contractually guaranteed, including clear provisions regarding liability if data is incorrect or not provided on time. This protects you against risks that would otherwise fall solely on you as the reporting importer.
Conclusion
By 2026, CBAM has evolved from a reporting requirement into a payment obligation. For EU importers of steel, aluminium, cement, fertilisers, hydrogen and electricity, this means that those exceeding the threshold require authorised CBAM declarant status, reliable emissions data and contractual safeguards with their suppliers.
The retroactive nature of the system, with imports in 2026 and billing in 2027, makes it advisable not to wait until the first declaration.
As a dedicated customs service provider, Gerlach assists with the customs classification of your goods, the correct CBAM information in the import declaration, and the interface between customs clearance and CBAM obligations. Contact us if you wish to assess your compliance status or set up your import processes to be CBAM-compliant, so you can focus on your core business.
