What is the CBAM cost for exporting to the EU in 2026?
Under the EU Carbon Border Adjustment Mechanism (CBAM), from 1 January 2026 importers of covered goods (including iron and steel, aluminium, cement, fertilisers, hydrogen, and electricity) must buy CBAM certificates covering the embedded emissions of those goods. The certificate price tracks the weekly average EU Emissions Trading System (ETS) auction price, so the cost is roughly the embedded CO2 tonnes multiplied by the prevailing EU ETS carbon price, less any carbon price already paid in the country of origin.
CBAM is the EU mechanism that puts the same carbon cost on imported goods as on EU-produced goods, to stop "carbon leakage". The transitional reporting phase ran 2023–2025; the definitive regime, in which importers actually pay, began on 1 January 2026.
How the cost is calculated
- ·Determine the embedded emissions of the goods (tonnes of CO2e), using actual data where available or default values.
- ·Multiply by the CBAM certificate price, which equals the weekly average EU ETS auction price.
- ·Deduct any carbon price already paid in the country of production, to avoid double-charging.
Because the certificate price is pegged to the EU ETS, the per-tonne cost moves with the European carbon market rather than being a fixed published number. Exporters should price CBAM as "embedded tonnes × prevailing ETS price", and track the ETS rather than assume a static figure.
What exporters should do
- ·Measure and document the embedded emissions of covered products now — actual data beats default values, which are deliberately conservative (higher).
- ·Keep evidence of any carbon price paid domestically, since it is deductible.
- ·Build the ETS-linked cost into EU quotes as a variable line, not a fixed surcharge.
Frequently asked questions
The initial scope covers iron and steel, aluminium, cement, fertilisers, hydrogen, and electricity, with downstream products and further sectors under review for expansion.
No. The CBAM certificate price tracks the weekly average EU ETS auction price, so it varies with the European carbon market.