What is CBAM and when does it fully take effect?

CBAM (Carbon Border Adjustment Mechanism) is the EU's carbon border adjustment. It imposes a carbon price on imports of emission-intensive products: steel, iron, aluminium, cement, fertilisers, electricity and hydrogen. Transitional phase (October 2023 – December 2025): quarterly reporting only. Operational phase (from 1 January 2026): authorised importers must purchase CBAM certificates matching embedded CO₂ emissions. Certificate prices are linked to ETS auction prices. December 2025 Omnibus Regulation: 50-tonne/year threshold exempts ~90% of importers (mostly SMEs), except for electricity and hydrogen. First certificate purchase deadline: February 2027 for 2026 imports. Swiss forwarders: goods in transit to the EU containing covered materials may be subject to CBAM.

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