The EU’s Carbon Border Adjustment Mechanism (CBAM) entered its definitive phase on January 1, 2026. According to highlights from a European Commission webinar shared by Taiwan’s International Trade Administration, the mechanism covers importers whose combined annual imports of covered iron and steel, aluminum, cement and fertilizers exceed 50 tons. Electricity and hydrogen are covered regardless of volume.
Authorized CBAM declarants must submit their first annual declarations for 2026 imports and surrender the corresponding certificates by September 30, 2027. Certificate sales are expected to begin in February 2027.
Businesses should check product coverage using CN codes and collect data on import volumes, origin, embedded emissions, and eligible carbon prices paid abroad. Emissions may be reported using verified actual values or Commission default values, with obligations adjusted to account for EU ETS free allocation and eligible carbon payments.
Companies should also prepare for the planned extension to downstream products and the expected implementation of CBAM in Norway and Iceland from 2027.