Carbon Border Adjustment Mechanism (CBAM)

CBAM binds importers of cement, iron and steel, aluminium, fertilisers, electricity and hydrogen directly. An importer whose CBAM goods total 50 tonnes net mass or less in a calendar year is exempt; above that, it needs authorised CBAM declarant status and must declare all of that year's imports. The exemption does not cover electricity or hydrogen. Food and farm businesses can be caught through imported nitrogen fertiliser.

The first annual declaration, covering 2026 imports, is due by 30 September 2027, with CBAM certificates on sale from 1 February 2027.