Certificates & costs

Sales of CBAM certificates start in February 2027; from then on authorised declarants can buy at any time. From 2027 onwards they must hold, at the end of each quarter (31 March, 30 June, 31 October and 31 December), certificates covering at least 50% of the emissions embedded in the CBAM goods imported since the start of the year. In 2027 they must also buy the certificates corresponding to their 2026 imports.

Authorised declarants buy certificates from the Member State where they are established, on a common central platform (CCP) established jointly by the Member States and the Commission. The CCP begins operating on 1 February 2027 and is accessible only to authorised CBAM declarants, and only from within the CBAM Registry.

In 2026 the Commission sets the certificate price quarterly, as the average of the auction clearing prices of EU ETS allowances, weighted by auction volume. From 2027 the price is set weekly, as the average of the closing EU ETS allowance prices on the auction platform. Prices are published in euro. Because the CBAM price tracks the ETS allowance price, an importer's CBAM cost is driven by the ETS market, the embedded emissions of the goods, and any carbon price already paid abroad.

For each CBAM good in a given year, the number of certificates to surrender is the quantity imported multiplied by the good's specific embedded emissions, reduced by the specific embedded free allocation and, where relevant, by the emissions already covered by a carbon price effectively paid in the country of origin. If the result for a good is negative, it is set to zero. Embedded emissions may be reported using either actual verified emissions or default values.

For each CBAM good, the obligation is based on the good's embedded emissions reduced by the free allocation an EU producer would receive for producing the same good — so EU and imported goods are treated equally. This adjustment is calculated from CBAM benchmarks (adapted from the EU ETS benchmarks) and reflects the gradual phase-out of ETS free allowances in CBAM sectors between 2026 and 2034: as free allocation decreases, the CBAM obligation increases. Because there is generally no free allocation for electricity generation under the ETS, there is no free-allocation adjustment for electricity imports.

An authorised declarant can claim a reduction in the number of certificates to surrender for a carbon price already effectively paid in the country of origin on the declared embedded emissions — this avoids paying twice for the same emissions. Only a price that was genuinely paid counts: if the operator received rebates, free allowances or other compensation, that benefit is deducted from the carbon price recognised. The Commission plans to adopt in 2026 an implementing act detailing the evidence required, its certification by an independent person, and currency conversion rules.