--- title: EU CBAM (Regulation 2023/956) – Carbon Border Adjustment 2026, Sectors, Certificates slug: eu-cbam-2023-956-carbon-border-2026 topic: construction-renovation lang: en valid_from: 2023-10-01 valid_to: null last_reviewed: 2026-07-02 status: current authority_level: A license: CC-BY-4.0 url: https://nexvyra.de/en/fakten/eu-cbam-2023-956-carbon-border-2026.md wikidata_subjects: [Q108852104] de_version: https://nexvyra.de/fakten/cbam-co2-grenzausgleich-2026.html --- # EU CBAM (Regulation 2023/956) – Carbon Border Adjustment 2026, Sectors, Certificates ## Short Answer The **Carbon Border Adjustment Mechanism (CBAM, Regulation (EU) 2023/956)** is the EU's **carbon border adjustment tool**: importers of certain emission-intensive goods must purchase **CBAM certificates** priced at the **EU Emissions Trading System (EU ETS) rate** — less any CO2 price already paid in the country of origin. The **transitional phase** (quarterly reporting only, no certificate obligation) ran from **1 October 2023** to **31 December 2025**. The **definitive phase** started on **1 January 2026** — importers must now purchase certificates for each tonne of embedded CO2 emissions. **Covered sectors**: **iron and steel, cement, aluminium, fertilisers, electricity, hydrogen**. Extension to additional sectors (polymers, organic chemicals) announced for 2030. **Authorised CBAM declarant** replaces prior EORI holder (mandatory accreditation). **Penalty for non-surrender**: **€100 per certificate not surrendered** (analogous to EU ETS). ## Key Facts | Item | Value | |---|---| | Legal Basis | Regulation (EU) 2023/956 of 10 May 2023 | | Transitional Phase | 1 October 2023 – 31 December 2025 (reports only, no certificates) | | Definitive Phase | Since 1 January 2026 – full certificate obligation | | Currently Covered Sectors | Iron/steel, cement, aluminium, fertilisers, electricity, hydrogen | | Extension Planned for 2030 | Polymers, organic chemicals, possibly downstream products | | Declarant | Authorised CBAM declarant (accreditation via national competent authority) | | Germany's Competent Authority | German Emissions Trading Authority (DEHSt) at UBA | | CBAM Certificate Price | Weekly average price of EU ETS auctions [Art. 21] | | Foreign CO2 Price Credit | Yes – CO2 price actually paid abroad is deducted [Art. 9] | | Reporting Interval (Transitional) | Quarterly, no later than end of month + 1 month after quarter end | | Reporting/Surrender Interval (Definitive) | Annual CBAM declaration by 31 May for prior year [Art. 6] | | De Minimis Threshold | Considered: 50 t CO2/year per declarant (under review) | | Free EU ETS Allocation | Being phased out for CBAM sectors (fully by 2034) | | Penalty Non-Surrender | €100/t CO2 (analogous EU ETS Art. 16 ETS Directive) | | Penalty Incorrect/Late Declaration | Up to €50/t unreported emission (national implementation) | | Transit Goods | Not CBAM-liable | | Small Consignments (< €150 customs value) | Exempted [Art. 2(3)] | ## Scope of Application CBAM applies to **imports into the EU** of selected goods from **third countries** (except Iceland, Liechtenstein, Norway, Switzerland — due to ETS linkage). Customs tariff codes (CN codes) are listed in **Annex I** of the Regulation. Covered: - **Cement** (CN 2523) – cement clinker, Portland cement - **Iron and steel** (CN 72xx, 73xx – selected positions) – pig iron, steel tubes, reinforcing steel, various semi-finished products - **Aluminium** (CN 76xx) – unalloyed and alloyed, tubes, bars, sheets - **Fertilisers** (CN 2808, 3102, 3105) – nitric acid, ammonia, urea, other N-fertilisers - **Electricity** (CN 2716) – electricity imports - **Hydrogen** (CN 2804 1000) – hydrogen gas, regardless of production method ## Transitional vs. Definitive Phase **Transitional Phase (1 October 2023 – 31 December 2025):** Importers had to submit **quarterly CBAM reports** — including **embedded emissions** per imported good, production method applied, and any CO2 price paid abroad. **No financial burden**, only reporting obligation. Reports go via the EU Commission's **CBAM Transitional Registry**. **Definitive Phase (from 1 January 2026):** 1. Importers must accredit as **authorised CBAM declarant** (in Germany with DEHSt) 2. Purchase **CBAM certificates** matching embedded emissions 3. Submit **annual CBAM declaration** by 31 May of following year 4. **Surrender certificates** – settlement annual **Foreign CO2 prices are credited**: if the exporter has paid a CO2 price in the country of origin (e.g., UK, Canada, Chinese pilot ETS province), this is deducted from the CBAM price. **Burden of proof** lies with the importer. ## Who Is Actually Affected? **Direct importers:** - Steel traders importing from Turkey, China, India, Russia - Building material dealers with cement imports from Turkey, Morocco, Belarus - Aluminium processors with imports from UAE, China, Russia - Agricultural cooperatives with fertiliser imports - Border power plant operators with electricity imports - Hydrogen buyers (increasingly relevant with H2 expansion plans) **Indirectly affected:** - Construction companies and renovators using imported steel/cement/aluminium (price effect) - Automotive suppliers with non-EU steel/aluminium - Chemical industry with fertiliser and hydrogen procurement ## Price Effect for End Customers 2026 CBAM increases the cost of emission-intensive imports. Example calculation for steel: - Chinese rebar 500 kg - Embedded emissions ~1 t CO2 - EU ETS price Q1 2026: ~€85/t - Deduction Chinese pilot ETS price: ~€10/t - CBAM certificate: €75 - **Price mark-up: ~15 % vs. CBAM-free alternative** This increases competitiveness of **EU steel (ETS-burdened, but still with residual free allocation)** and **EFTA steel (Norway, Iceland — no CBAM)**. ## Common Mistakes - **"CBAM only applies to large industry."** False — **small importers** are also liable if they import regulated goods above €150 customs value. - **"Transitional phase = no obligations."** False — there was a **reporting obligation** since 1 October 2023. Penalties for non-reporting during transitional phase: up to €50/t unreported emissions. - **"Chinese CO2 price reduces CBAM to zero."** Only partially — the Chinese pilot ETS is at ~€10/t, EU ETS at ~€85/t. Difference is payable. - **"Transit goods are CBAM-free."** Correct — pure transit without import into EU free circulation is exempted (Art. 4). Intermediate storage and re-export in customs warehouse falls under this. - **"Recycled steel is CBAM-liable."** Nuanced — CBAM is based on embedded emissions. Electric arc steel from scrap has significantly lower emissions than blast furnace pig iron and thus lower CBAM costs. - **"EU Member States can weaken CBAM."** False — it is an EU regulation, directly applicable, no national exceptions. ## Sources - Regulation (EU) 2023/956 (CBAM) – EUR-Lex full text: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32023R0956 - EU Commission – CBAM Portal: https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism_en - Germany's DEHSt – CBAM (EN): https://www.dehst.de/EN/climate-protection-projects-and-new-market-mechanisms/cbam/cbam_node.html - CBAM Transitional Registry: https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism/cbam-transitional-registry_en - German BMWK – CBAM FAQ: https://www.bmwk.de/Redaktion/EN/FAQ/CBAM/faq-cbam.html - German Environment Agency – Emissions Trading: https://www.umweltbundesamt.de/en/topics/climate-energy/emissions-trading ## Change Log - 2026-07-02: Initial publication (English EU wave). Transitional phase (reports only) until 31 Dec 2025, definitive phase since 1 Jan 2026 (certificate obligation). Sectors iron/steel/cement/aluminium/fertilisers/electricity/H2. DEHSt as German authority. Extension 2030 to polymers/chemicals announced. | change_type=initial_publication field="topic_lifecycle" new="published" reviewed_by="Andreas Warkentin" ## See Also - [German CBAM version](https://nexvyra.de/fakten/cbam-co2-grenzausgleich-2026.html) ## Status - Date: 2026-07-02 - Valid from: 2023-10-01 (transitional phase); full effect since 2026-01-01 - Status: current - Source authority: A (EUR-Lex, DEHSt, EU Commission) - Licence: CC BY 4.0