EU carbon border tax CBAM enters compliance phase: 12,000 operators registered

The European Union’s Carbon Border Adjustment Mechanism, known as CBAM, entered its compliance phase on 1 January 2026, marking the world’s first fully operational border carbon adjustment policy and a milestone in the EU’s climate strategy. According to figures published by the European Commission, more than 12,000 economic operators submitted CBAM authorisation applications by 7 January 2026, and over 4,100 obtained authorised declarant status across the EU.

How CBAM works

CBAM applies a carbon price to imports of goods produced in countries with weaker climate policies, mirroring the costs paid by EU producers under the Emissions Trading System. It currently covers six high-emission sectors: cement, iron and steel, aluminium, fertilisers, electricity and hydrogen. Importers exceeding the new 50-tonne annual threshold must obtain CBAM authorised declarant status, report embedded emissions of imported goods, and from February 2027 purchase CBAM certificates retroactively for 2026 imports. Certificate prices are linked to the weekly average of EU ETS auction closing prices.

The Omnibus simplification package

Ahead of the compliance phase, the EU adopted in October 2025 an Omnibus simplification package amending the original CBAM regulation. The most important change introduced a binding 50-tonne de minimis threshold, exempting 90 percent of importers while still covering 99 percent of embedded emissions according to the Commission. The start of CBAM certificate sales was also postponed from January 2026 to February 2027, giving operators more time to adjust. The annual CBAM declaration deadline was pushed from 31 May to 30 September of the year following importation.

What lies ahead

The Commission has signalled further steps in 2026 and beyond. Default values used when actual emissions data is unavailable will rise by 10 percent in 2026, 20 percent in 2027 and 30 percent from 2028, designed to incentivise importers to supply verified data. A legislative proposal to extend CBAM to 180 downstream aluminium and steel products from 1 January 2028 has already been submitted. The Commission has also proposed a temporary Decarbonisation Fund, allocating 25 percent of CBAM revenues for 2028-2029 to support EU producers exposed to carbon leakage risk.