# CBAM Reference - Verified Facts and Sources

Companion data file for the CBAM Compliance Navigator skill.
Regulation: Carbon Border Adjustment Mechanism, **Regulation (EU) 2023/956**, as amended by the 2025 Omnibus simplification **Regulation (EU) 2025/2083**.

**State of knowledge: verified mid-2026 (June 2026).** Settled law and proposals are separated below. Items that could not be confirmed against a primary source are marked `// VERIFY`. Always confirm a compliance-critical number against the consolidated regulation and the latest DG TAXUD implementing acts.

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## 1. The headline facts (verified)

| Fact | Value | Status |
|------|-------|--------|
| Core regulation | Regulation (EU) 2023/956 (10 May 2023; in force 17 May 2023) | Settled law |
| Transitional reporting period | 1 Oct 2023 to 31 Dec 2025 (quarterly reports, no payments) | Settled, now ended |
| Definitive regime starts | 1 January 2026 | Settled law |
| 2025 Omnibus simplification | Regulation (EU) 2025/2083 (OJ 17 Oct 2025; in force 20 Oct 2025) | Settled law |
| New de-minimis threshold | **50 tonnes** cumulative annual net mass per importer | Settled law |
| What the 50t threshold exempts | ~182,000 importers (~90%), keeping >99% of embedded emissions in scope | Commission figure |
| Threshold does NOT apply to | Electricity and hydrogen (covered at any volume) | Settled law |
| First CBAM certificate price (Q1 2026) | **€75.36 / tCO2e**, published 7 April 2026 | Confirmed |
| Certificate sales start | **1 February 2027** (deferred from 2026 by the Omnibus) | Settled law |
| First annual declaration + first surrender due | **30 September 2027** (for 2026 imports) | Settled law |
| Annual declaration deadline (permanent) | 30 September of the year after import | Settled law |
| Quarterly minimum holding (from 2027) | **50%** of accrued embedded emissions (reduced from 80%) | Settled law |
| Authorisation applications opened | 31 March 2025 (CBAM Registry, Authorisation Management Module) | Settled |
| Grace mechanism | Apply before 31 March 2026 to keep importing while the application is pending | Settled law |
| Authorisation assessment period | Up to 120 days | Settled |
| Excess-emissions penalty | €100 / tCO2e (inflation-indexed), per unsurrendered certificate; surrender obligation remains | Settled law |
| Unauthorised-import penalty | 3x to 5x the standard penalty rate | Settled law |

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## 2. Covered goods (Annex I sectors)

CBAM scope is driven by the **Combined Nomenclature (CN) code of the imported good itself**, listed in Annex I of Regulation (EU) 2023/956.

| Sector | Examples of covered goods | Emissions counted |
|--------|--------------------------|-------------------|
| Cement | Clinker, cement, aluminous cement | Direct and indirect |
| Iron and steel | Iron, steel, tubes/pipes, structures, tanks, fasteners (screws, bolts, nuts, washers), some downstream steel articles | Direct (indirect for some) |
| Aluminium | Unwrought aluminium, bars, rods, profiles, wire, plates, sheets, foil, tubes, structures | Direct (indirect for some) |
| Fertilisers | Nitric acid, ammonia, nitrates, urea, mixed fertilisers | Direct and indirect |
| Electricity | Imported electricity | Direct |
| Hydrogen | Hydrogen | Direct |

### CN-code logic
- Coverage follows the CN code of the imported item. A steel sheet is covered; a car body made of steel is not (different CN code, not in Annex I). An aluminium sheet is covered; an aluminium car door is not.
- To limit circumvention, **some downstream products are in scope**, notably fasteners and pipe fittings derived from steel.
- The importer should map each product to its 8-digit CN code and check it against the current Annex I list before deciding scope.

### Excluded origins
Goods originating in countries integrated with or linked to the EU ETS are excluded: **Iceland, Liechtenstein, Norway, Switzerland**, and certain territories. // VERIFY current exclusion list against DG TAXUD.

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## 3. The 2025 Omnibus - what changed (Regulation (EU) 2025/2083)

Process: proposal 26 Feb 2025; political agreement 18 June 2025; formal adoption October 2025; OJ 17 Oct 2025; in force 20 Oct 2025.

1. **New 50-tonne de-minimis mass threshold** replacing the old €150-per-consignment rule. Importers whose cumulative annual net mass of covered goods is at or below 50 tonnes are exempt from authorisation, reporting, and surrender. Cumulative across iron & steel, aluminium, fertilisers, and cement. Does NOT apply to electricity or hydrogen. The Commission may adjust the threshold annually.
2. **Annual declaration deadline moved to 30 September** (from 31 May).
3. **Certificate sales deferred to 1 February 2027** (originally certificates would have been sold during 2026).
4. **Quarterly minimum holding reduced to 50%** of embedded emissions to date (down from a planned 80%).
5. **Simplified emissions calculation and easier default-value use** for importers just over the threshold.
6. **Delegation allowed**: authorised declarants may delegate filing to EU-established third parties with an EORI, while remaining legally liable.

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## 4. Free-allowance phase-out / CBAM obligation factor

In 2026, importers effectively pay CBAM on only ~2.5% of embedded emissions because EU producers still get ~97.5% free ETS allocation. The obligation factor rises to 100% by 2034.

| Year | CBAM obligation factor (free allocation withdrawn) |
|------|------|
| 2026 | 2.5% |
| 2027 | 5% |
| 2028 | 10% |
| 2029 | 22.5% |
| 2030 | 48.5% |
| 2031 | 61% |
| 2032 | 73.5% |
| 2033 | 86% |
| 2034 | 100% |

// VERIFY 2030+ figures against the consolidated ETS Directive; the back-loaded curve has been politically contested.

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## 5. Cost formula (conceptual)

> CBAM cost ≈ (embedded emissions - foreign carbon price adjustment) × applicable CBAM obligation factor × CBAM certificate price

- One CBAM certificate = one tonne of CO2e.
- Certificate price tracks the weighted average of EU ETS auction clearing prices. Four quarterly prices are published in 2026; weekly prices from 2027.
- A verified carbon price already paid in the country of origin is deductible.
- The CBAM obligation factor in 2026 is ~2.5%, so the 2026 effective cost is small even at a ~€75/t certificate price.

Worked illustration (2026 imports): 1,000 t of steel with 1.8 tCO2e embedded per tonne = 1,800 tCO2e. At 2.5% obligation factor and €75.36/t = 1,800 × 0.025 × 75.36 ≈ **€3,391** for the year, before any foreign-carbon-price deduction. The same emissions in 2034 (100% factor) at the same price would be ~€135,648. // VERIFY emission intensity assumption; use actual or default values per CN code and origin.

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## 6. Embedded emissions: actual vs default values

- **Actual values** (verified, installation-specific) are preferred and usually cheaper, because defaults are conservative.
- **Default values** are published by the Commission per CN code and country of origin and are a fallback when actual data is unavailable.
- Default values carry a conservative **mark-up** rising over time (cited as ~10% in 2026 toward ~30% by 2028 for aluminium, cement, iron & steel; ~1% for fertilisers). // VERIFY exact schedule against the implementing regulation on default values.
- **Verification** by accredited verifiers applies only where actual values are used. Importers relying solely on default values are not subject to verification.

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## 7. Roles

- **Authorised CBAM declarant**: from 1 Jan 2026, the only entity permitted to import covered goods above the de-minimis threshold. Can be the EU-established importer or an indirect customs representative. Prerequisites: valid EORI, financial/operational info, compliance procedures, possible financial guarantee. Reviewed by the Member State National Competent Authority (NCA), up to 120 days.
- **Importer**: party bringing goods into the EU. If EU-established, normally the declarant.
- **Indirect customs representative**: EU-established agent who can be (and for non-EU importers must be) the declarant, assuming the same obligations and penalties.

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## 8. Sources

Official / authoritative:
- European Commission, DG TAXUD - CBAM hub: https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism_en
- DG TAXUD - "Officially published: Simplifications for CBAM" (20 Oct 2025): https://taxation-customs.ec.europa.eu/news/officially-published-simplifications-carbon-border-adjustment-mechanism-cbam-2025-10-20_en
- DG TAXUD - "First CBAM certificate price now available" (7 Apr 2026): https://taxation-customs.ec.europa.eu/news/first-cbam-certificate-price-now-available-2026-04-07_en
- DG TAXUD - Price of CBAM certificates: https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism/price-cbam-certificates_en
- DG TAXUD - CBAM Registry and Reporting: https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism/cbam-registry-and-reporting_en
- EUR-Lex - Regulation (EU) 2023/956: https://eur-lex.europa.eu/eli/reg/2023/956/oj
- EUR-Lex - CBAM summary: https://eur-lex.europa.eu/EN/legal-content/summary/carbon-border-adjustment-mechanism.html

Corroborating analyses (cross-check):
- ICAP - "EU adopts simplifications of CBAM rules": https://icapcarbonaction.com/en/news/eu-adopts-simplifications-cbam-rules-ahead-compliance-phase-starting-2026
- EY - "EU adopts CBAM Omnibus Regulation": https://www.ey.com/en_gl/technical/tax-alerts/eu-adopts-cbam-omnibus-regulation
- Mayer Brown - "EU Adopts CBAM Simplification Regulation: 10 Key Amendments": https://www.mayerbrown.com/en/insights/publications/2025/10/eu-adopts-cbam-simplification-regulation-10-key-amendments-and-challenges-ahead
- S&P Global - "First CBAM certificate price for Q1 2026 at €75.36/mtCO2e": https://www.spglobal.com/energy/en/news-research/latest-news/energy-transition/040726-brussels-confirms-first-cbam-certificate-price-for-q1-2026-at-eur7536mtco2e

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*End of reference. Flagged items (`// VERIFY`) must be confirmed against the consolidated Regulation (EU) 2023/956 as amended by (EU) 2025/2083 and the latest DG TAXUD implementing acts before use in compliance-critical contexts.*