CBAM sharpened: what companies can expect in 2026

Authors: Johannes Hartlieb, Alexander Gimona

As of January 1st, 2026, the Carbon Border Adjustment Mechanism (CBAM) has come into force. We have already reported on it several times in the past. What was previously designed as a transitional regime with mere reporting obligations has now become a binding market regime. For importers of emission-intensive goods into the EU, this marks the beginning of a new phase: organizationally demanding, legally complex, and economically tangible.

The European Carbon Border Adjustment Mechanism is intended to prevent carbon leakage, i.e., the relocation of production to countries with lower climate protection standards. From 2026 onwards, it is no longer about “test runs,” but about practical implementation with clear obligations.

Transition period ended – definitive phase started

Between October 2023 and the end of 2025, a transitional arrangement applied. Affected companies had to report emissions data on a quarterly basis, without having to purchase certificates.

Since January 1st, 2026, the definitive phase applies:

Imports of CBAM goods are, in principle, only permitted through authorized CBAM declarants.
Embedded emissions for imported goods must be declared annually.
These emissions must in the future be offset through the purchase and surrender of CBAM certificates.

This effectively links CBAM to the EU Emissions Trading System (EU ETS): The price of the certificates is based on the ETS average price.

Who is affected?

For now, the scope of application remains limited to particularly emission-intensive sectors. These include, in particular:

Iron and steel
Aluminum
Cement
Fertilizers
Hydrogen
Electricity

Certain processed products may also be covered.

A key change is the introduction of a mass-based threshold of 50 tons per year per importer. Those who remain below this threshold are not subject to CBAM obligations; however, it is important to note that this exemption does not apply to hydrogen and electricity.

The exemption covers not only the substantive reporting and surrender obligations, but also the obligation to obtain the status of an authorized CBAM declarant. This is clearly evident from Article 2a of the CBAM Regulation in conjunction with the recitals of the amending regulation 2025, according to which importers below the 50-ton threshold are “exempt from the obligations under Regulation (EU) 2023/956.”

Authorization as a CBAM declarant: the new “entry ticket”

Since 2026, affected goods may generally only be released for free circulation by an authorized CBAM declarant.

For importers, this means:

Application for authorization with the competent authority,
Establishment of internal processes for collecting emissions data,
Ensuring data validation and documentation.

Anyone exceeding the threshold must be authorized; until March 31st, 2026, a transitional rule applies: Once an application has been submitted, imports may continue even if the decision is still pending.

Particularly in the case of intra-group supply chains or complex trading structures, the question arises as to who is legally considered the “importer.” As a result, customs law structuring and contractual risk allocation are becoming significantly more important.

Emissions calculation: supply chains in focus

The central pivot remains determining embedded emissions. From 2026 onwards, actual emissions data must generally be used. Default values are only permitted to a limited extent.

This brings considerable practical challenges:

Data collection from producers in third countries
Transparency regarding production processes
Alignment of technical calculation parameters
Internal control and compliance structures

Without a reliable data basis, there is a risk of additional financial burdens, for example through the application of unfavorable default values or administrative sanctions. CBAM thus becomes a classic interface topic between procurement, customs, sustainability management, and the legal department.

Financial impact: effective 2026 – payment from 2027

Although the definitive phase has been in effect since January 1st, 2026, the actual purchase of CBAM certificates will only begin in 2027 – retroactively covering goods imported in 2026.

The annual CBAM declaration for the previous year must be submitted by September 30th (first submission on September 30th, 2027, for the 2026 reporting year). Companies must therefore begin setting aside provisions now and adjust their calculations accordingly.

CBAM will thus evolve from a purely reporting tool into a cost factor with direct implications for pricing, margins, supplier selection, and contract drafting.

Relationship with foreign CO₂ pricing systems

If CO₂ prices have already been paid in the country of origin, they may be credited under certain conditions. However, this requires verifiable documentation. The recognition of such systems will be largely specified by the European Commission. For companies operating internationally, this means continuously monitoring regulatory developments at the EU level.

Outlook: simplification and expansion at the same time

Current developments show a twofold picture:

On the one hand, relief for smaller importers through quantity thresholds.
On the other hand, discussions about expanding the scope to additional products as well as stricter anti-circumvention measures.

CBAM therefore remains a dynamic regulatory framework that has now entered into force but will continue to evolve in the coming years.

Conclusion

CBAM has been in effect since 2026. For affected companies, this marks a regulatory turning point in EU foreign trade: Climate policy is becoming a trade policy reality and a concrete implementation and strategic challenge for companies operating internationally.

Disclaimer

This article is for general information only and does not replace legal advice. Haslinger / Nagele Rechtsanwälte GmbH assumes no liability for the content and correctness of this article.