EU Publishes Key Implementing Acts for CBAM Ahead of Definitive Phase
EU Publishes Key Implementing Acts for CBAM Ahead of Definitive Phase
On 17 December 2025, the European Commission released a comprehensive package of implementing and delegated acts for the Carbon Border Adjustment Mechanism (CBAM), marking a major milestone as the mechanism transitions from its transitional phase to the definitive financial phase, which has started on January 1st 2026.
What is CBAM?
CBAM is the EU’s flagship climate policy designed to prevent carbon leakage—the risk that companies relocate production to jurisdictions with weaker climate rules. It applies a carbon price on imports of certain goods, ensuring that imported products bear a cost equivalent to the EU’s Emissions Trading System (ETS). Initially covering sectors like cement, steel, aluminium, fertilizers, electricity, and hydrogen, CBAM aims to level the playing field for EU producers while incentivizing global decarbonization.
From Transitional to Definitive Phase
The transitional phase, which began in October 2023, focused on reporting obligations without financial payments. Importers were required to submit quarterly reports detailing embedded emissions in covered goods. This phase allowed businesses and authorities to prepare for full implementation.
Now, with the definitive phase starting in 2026, CBAM introduces financial obligations: importers must purchase CBAM certificates reflecting the carbon cost of their goods. This shift requires robust rules for emissions calculation, verification, customs procedures, and pricing—precisely what the new acts deliver.
Key Highlights of the 17 December Package
- Emissions Calculation Rules: Detailed methodologies for determining embedded emissions at installation level, aligned with EU ETS boundaries.
- Verification Standards: Principles for verifying actual emissions, ensuring accuracy and consistency.
- Customs & Data Exchange: Procedures for integrating CBAM data into customs declarations and IT systems.
- Default Values & Benchmarks: Sector-specific default emissions values and mark-ups, with reviews scheduled for 2027.
- Certificate Pricing: CBAM certificates priced based on weekly EU ETS averages; sales begin February 2027.
- Anti-Circumvention Measures: Stronger safeguards against avoidance tactics and plans to expand CBAM scope to downstream products by 2028.
- Support Mechanisms: Proposal for a temporary Decarbonisation Fund to assist EU industries during the free allocation phase-out.
Why This Matters
These acts finalize the legal and technical framework for CBAM’s financial phase, ensuring smooth implementation and reinforcing the EU’s climate ambition. Businesses importing covered goods into the EU must now prepare for compliance with these new rules, as the cost of carbon becomes a global trade reality.
Need support with CBAM?
If you have any CBAM-related needs or questions, reach out to our Climate and Decarbonization team at BDO Netherlands. We’re here to help you navigate compliance and seize opportunities in the low-carbon economy.
