EU CBAM 2026 — what it is, who it applies to, reporting

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What is CBAM

CBAM, the Carbon Border Adjustment Mechanism, is an EU law instrument introduced by Regulation (EU) 2023/956 of the European Parliament and of the Council of 10 May 2023. Its purpose is to limit so-called carbon leakage — a situation in which high-emission production moves outside the EU and the goods are then imported without bearing the cost of emissions that EU producers covered by the EU Emissions Trading System (EU ETS) have to bear.

In practice, CBAM is meant to ensure that the price of an imported good reflects the CO2 emissions generated in its production — in a way similar to the cost an EU producer would incur by buying allowances under the EU ETS. The mechanism is not a customs duty in the classic sense — it is a separate climate instrument, settled outside the standard customs procedure, although closely linked to importation and to the goods declaration data.

Importantly, CBAM covers goods regardless of their country of origin — it applies to imports from China or Türkiye as well as from the United Kingdom. The only criteria are whether the goods fall within Annex I to the Regulation and whether the de minimis threshold has been exceeded.

Who CBAM applies to

CBAM obligations apply to importers bringing into the European Union goods listed in Annex I to the Regulation, belonging to the following sectors:

• cement,
• electricity,
• fertilisers,
• iron and steel,
• aluminium,
• hydrogen.

The obligation rests on the importer — it must hold authorised CBAM declarant status and account for the emissions embedded in the imported goods, regardless of where the goods were produced. If a customs declaration is lodged on the importer's behalf by an indirect customs representative, the representative must itself hold authorised CBAM declarant status.

In practice, this means the obligation does not rest on the non-EU producer or exporter (although they supply the emissions data), but on the Polish or other EU company named as the importer in the customs declaration. If you use an indirect customs representative for clearance, it is worth establishing in advance who will in practice act as the CBAM declarant and who will collect the data from the supplier.

Authorised CBAM declarant — what it means

From 1 January 2026, importing goods covered by CBAM into the EU (above the de minimis threshold) requires authorised CBAM declarant status. Without this status, bringing in goods covered by the mechanism is not possible — with one transitional exception (Article 5(7a) of the Regulation as amended): an importer who applied for the status by 31 March 2026 may temporarily import CBAM goods until the authority issues its decision.

The status is granted by the competent national authority (National Competent Authority) of the Member State in which the importer is established — the application is submitted through the EU CBAM Registry. The authorised CBAM declarant is responsible for:

• registering in the CBAM system and obtaining a declarant number,
• collecting data on the emissions embedded in the imported goods (e.g. from data supplied by the non-EU producer/exporter),
• submitting the annual CBAM declaration,
• purchasing and surrendering the appropriate number of CBAM certificates.

What data you need to collect from the supplier

To account correctly for embedded emissions, the authorised declarant needs the following, among other things, from the non-EU producer or exporter:

• the type and quantity of the goods (CN code, mass),
• the amount of direct and — in some cases — indirect emissions generated in production,
• information on any carbon price already paid in the country of origin (which allows the number of certificates to be surrendered to be reduced),
• an emissions calculation method consistent with the methodology set out in the implementing acts to the CBAM Regulation.

A lack of such data from the supplier does not release the importer from the obligation — in that case default (reference) values set by the European Commission have to be used, which are usually less favourable than actual data.

When CBAM applies — timeline

The mechanism entered into force in stages:

• 1 October 2023 – 31 December 2025 — transitional period: importers (or their indirect representatives) were required to submit only quarterly CBAM reports (without buying and surrendering certificates), with the first report due from 31 January 2024.
• from 1 January 2026 — start of the definitive system and of the 50-tonne de minimis threshold: importing CBAM goods requires authorised declarant status (with an exception for applications submitted by 31 March 2026), and the mechanism moves from quarterly reporting to annual declarations together with the obligation to buy certificates.
• from 1 February 2027 — start of the sale of CBAM certificates through the common central platform.
• by 30 September 2027 — deadline for the first annual CBAM declaration and the surrender of certificates for imports made in 2026.

CBAM reporting — how the definitive system works

During the transitional period (2023–2025) quarterly reporting applied, without buying certificates — at that stage companies were learning how to calculate the emissions embedded in goods. From 1 January 2026 this model changes:

• The basic unit of settlement becomes the annual CBAM declaration — the first one (for 2026) is due by 30 September 2027 and must contain, among other things, the quantity of imported goods, the amount of embedded emissions and the number of certificates to be surrendered (after taking into account any reductions for a carbon price paid in the country of origin).
• The declaration requires a verification report from an accredited verifier.
• CBAM certificates can be purchased on the common central platform from 1 February 2027.
• The price of a CBAM certificate is calculated on the basis of the auction price of EU ETS allowances — as a quarterly average in 2026 and a weekly average from 2027.
• The declarant must also hold in its CBAM Registry account, at the end of each quarter, a number of certificates corresponding to at least 50% of the emissions embedded in goods imported since the beginning of the calendar year — this obligation applies from 2027.

Common mistakes when implementing CBAM in a company

When implementing CBAM obligations, the same problems recur most often:

• Checking only the CN code of the goods, without checking the de minimis threshold — the company assumes that because the goods fall within Annex I it immediately has full CBAM obligations, even though its total import volume in the calendar year is within the 50-tonne limit.
• Applying for authorised declarant status too late — the process through the CBAM Registry and the national competent authority takes time; leaving the application to the last minute may block the import of goods covered by the mechanism.
• Not agreeing in advance with the supplier who will provide the emissions data — if the non-EU exporter is not prepared to report emissions, the importer will be stuck with the more expensive default values.
• Confusing the EU CBAM with the UK CBAM — these are two different legal systems with different start dates, thresholds and goods scope (the UK CBAM does not cover electricity); meeting the obligations in one does not automatically mean meeting them in the other.
• Treating CBAM as a one-off declaration — in the definitive system it is an annual process requiring data to be collected throughout the year, not just in the month before the declaration deadline.

CBAM and the United Kingdom — two separate topics

This article describes the general EU CBAM (Regulation 2023/956), which applies to imports into the EU from any non-EU country — including the United Kingdom. If your company trades in CBAM goods between the UK and the EU, it is worth distinguishing two separate topics:

• If you import CBAM goods from the UK into Poland — check whether your company is subject to the EU CBAM: CBAM from 1 January 2026 – does importing from the UK to Poland affect your company.
• If you export goods to the United Kingdom — the United Kingdom is introducing its own, separate UK CBAM from 1 January 2027, covering aluminium, cement, fertilisers, hydrogen and iron and steel — without electricity (unlike in the EU) — with different thresholds and rules from the EU CBAM: UK CBAM 2027 — a complete guide for Polish exporters to the United Kingdom.

The EU CBAM and the UK CBAM are two independent legal systems — obligations under one do not release you from obligations under the other.

Sources

• European Commission — Carbon Border Adjustment Mechanism (overview)
• European Commission — CBAM definitive regime (definitive system from 2026)
• EUR-Lex — Regulation (EU) 2023/956
• EUR-Lex — consolidated text of 2023/956 (as at 20.10.2025, after the Omnibus package)
• DEHSt (German national emissions trading authority) — CBAM Definitive Regime from 2026

If your company trades in CBAM goods on the UK–EU route and you need support with customs clearance, contact us.

Frequently asked questions