- 1CBAM (MACF in French) puts a price on carbon in products imported into Europe.
- 26 sectors covered: cement, iron and steel, aluminium, fertilisers, electricity and hydrogen.
- 3Definitive phase: 1 January 2026; certificates from 1 February 2027 for annual imports exceeding 50 t.
- 4The importer declares and pays; the producer outside the EU supplies the emissions data.
The Carbon Border Adjustment Mechanism (CBAM) concerns companies importing steel, aluminium, cement or fertilisers into Europe (above 50 t per year), as well as electricity or hydrogen. It entered its definitive phase on 1 January 2026. Its acronyms, certificates and declarations are easier to understand once you understand the underlying principle.
1The principle of CBAM
CBAM makes importers pay for the carbon emitted when manufacturing certain products outside Europe, so those products are not cheaper than their European-made equivalents, where carbon is already taxed.
CBAM acts as a carbon price at the border: it puts a European producer, already paying for its emissions through the European carbon market, the EU Emissions Trading System (EU ETS), on an equal footing with a foreign producer that often pays nothing in its own country.
2Why Europe created it
The Union wants to prevent carbon leakage. Without CBAM, a European company could be tempted to move production to a country without climate constraints to produce more cheaply: emissions would occur elsewhere, and Europe would lose factories.
CBAM prevents this scenario: whether a product is manufactured in Europe or imported, its carbon now has a comparable price. It supports the European climate target (reducing emissions by 55% by 2030), designed to avoid penalising local industry.
3Which products are covered
CBAM targets 6 carbon-intensive product families, shown above. Each product is identified by a customs code, the Combined Nomenclature or CN code. The mechanism covers around 570 of these codes. On 17 December 2025, the Commission proposed extending it from 1 January 2028 to around 180 processed products containing substantial amounts of steel or aluminium (machinery, mechanical parts and automotive components); this proposal is under examination, and chemicals are not included at this stage.
Which products are covered by CBAM?
CBAM targets 6 categories of carbon-intensive products. Each product is identified by a customs code (Combined Nomenclature, or CN). Expand a sector to see the details.
To find the exact CN code for your goods, consult the customs RITA database.
4Who must manage CBAM obligations
The obligation falls on the European importer: the company established in the EU bringing the product onto the European market. Above 50 t per year of covered goods, it must obtain authorised CBAM declarant status from its national authority (in France, the Directorate-General for Energy and Climate, DGEC). It then declares the emissions embedded in its imports annually and purchases the corresponding certificates: certificate sales open on 1 February 2027 for 2026 imports, and the first annual declaration is due by 30 September 2027.
The foreign producer is not taxed directly, but must provide carbon data to European customers or risk those customers switching to a more transparent supplier. European producers in the same sectors are affected differently: they progressively lose the free allowances protecting them, a topic covered in our CBAM guide for manufacturers (in French). A Commission reform proposal of 17 July 2026 (phase 5, 2031-2040) could slow this withdrawal and extend CBAM-related free allocation until 2037-2038; it has not yet been adopted.
5Are you affected? The test
An initial assessment comes down to 3 questions. The tool below draws on the European Commission's self-assessment tool, updated with the 2026 rules.
Are you affected by CBAM?
3 questions for an initial assessment, inspired by the European Commission's self-assessment tool (DG TAXUD). Indicative: it does not replace an analysis of the exact customs code.
What type of product do you import into the EU?
CBAM covers only 6 categories of carbon-intensive products.
6The dates to remember
Key CBAM dates
From a running-in period without payment to full carbon charging, the mechanism ramps up over a decade.
Importers report the emissions of their imports each quarter, without paying anything. A running-in period.
2026 imports are the first subject to certificates. Above 50 t per year, authorised CBAM declarant status is required to continue importing.
Certificates go on sale from 1 February 2027 for 2026 imports; the first annual declaration must be submitted before 30 September 2027.
The Commission proposes adding about 180 products containing substantial amounts of steel or aluminium (machines, mechanical parts, automotive components). The proposal is under review.
Planned end of free allowances for European producers: 100% of carbon is charged, following a gradual ramp-up since 2026. A Commission proposal of 17 July 2026, not yet adopted, could extend this withdrawal until 2037-2038.
7Official guides for further information
The DGEC (Directorate-General for Energy and Climate) publishes 2 practical reference guides, to consult according to your role:
- The practical importer guide: the reference CBAM document, bringing together all available, updated resources.
- The practical CBAM producer guide: intended for producers, being updated for the definitive period but still available.
