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EU Trade Policy2027 Deadline

EU CBAM: The Carbon Border Tax That Adds Cost to Every Steel, Aluminum & Cement Shipment into Europe

From January 2027, importers shipping steel, aluminum, cement, fertilizers, or hydrogen into the EU must buy CBAM certificates for the embedded carbon in their goods. Certificate prices track the EU ETS carbon market — currently €50–70/tonne CO₂. For steel, that adds roughly $120–$160 per tonne to your landed cost.

June 2026·8 min read
Jan 2027
Full obligation from
100% certificate surrender
2026
Phase-in starts
Retroactive settlement
~€60/t
EU ETS carbon price
CO₂ certificate (2026 avg)
~€114/t
CBAM cert cost — steel
At ~1.9t CO₂eq per tonne

CBAM Timeline — When Each Phase Kicks In

Oct 2023 – Dec 2025
Transitional Reporting Phase
Importers report embedded emissions quarterly. No certificates required. No payment.
Jan 2026
Phase-In Begins
Certificate purchases required for a rising percentage of embedded emissions. Retroactive adjustment for 2026 imports calculated end of year.
Jan 2027
Full Obligation
100% of embedded emissions must be covered by CBAM certificates. Annual surrender deadline: May 31 of the following year.
2034
EU ETS Free Allowances Phased Out
EU producers lose all free ETS allowances; CBAM fully 'levels the playing field' vs imports.

Which Products Are Covered by CBAM?

SectorHTS ChapterScopeNotes
Steel & IronChapter 72–73Mill products, pipes, structural steelAlso covers some downstream articles like fasteners and tubes
AluminumChapter 76Unwrought, rolled, extruded aluminumIncludes alloyed and unalloyed; some semi-finished exclusions
Cement2523Portland cement, aluminous cementOne of the highest carbon-intensity sectors
FertilizersChapter 31Nitrogen fertilizers (ammonia, urea, nitric acid)Key for agricultural supply chains
Electricity2716Imported electricity via grid connectionRelevant for Norway, Switzerland, UK border trade
Hydrogen2804.10Electrolytic and other hydrogenGrowing importance as green hydrogen trade scales

What CBAM Actually Costs — Per Tonne

Product (origin)Embedded CO₂eq@€40/t@€60/t@€80/t
Hot-rolled steel (CN→EU)~2.1t CO₂/t€84€126€168
Aluminum (CN→EU)~12t CO₂/t€480€720€960
Cement (IN→EU)~0.8t CO₂/t€32€48€64
Urea fertilizer (RU→EU)~1.2t CO₂/t€48€72€96
Steel (EU-produced)~0.3–0.6t CO₂/t

Embedded emissions vary by producer. Default EU Commission values used where actual data unavailable. Non-EU carbon prices already paid may be deducted.

CBAM affects EU-bound shipments — not US-bound imports

CBAM is an EU import mechanism. If you're a US importer buying from China or Vietnam for US delivery, CBAM does not apply. If you export steel, aluminum, or cement to the EU, your EU buyer will face CBAM costs — which will affect the price they negotiate with you.

CBAM — Frequently Asked Questions

Related Guides

Track Your Full Landed Cost — Including Upcoming Regulatory Costs

Zentria Flow watches US tariffs daily and alerts you when rates change. CBAM applies to EU-bound goods — use the calculator for your US import costs, and set alerts for when regulations shift.

Zentria Brain