September 2, 2025: European Commission Confirms CBAM Launch in January 2026
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The European Commission has reaffirmed that the Carbon Border Adjustment Mechanism (CBAM) will be fully implemented on January 1, 2026, dismissing recent market speculation about a possible delay. The confirmation comes from the Directorate-General for Taxation and Customs Union (DG TAXUD) in response to industry inquiries, underscoring that any postponement would require a formal legislative proposal – none of which is currently under consideration.
Despite persistent rumors suggesting that the financial phase of CBAM could be delayed due to procedural uncertainties, the Commission has made clear that the timeline remains unchanged. This final stage will introduce mandatory carbon payments for emissions embedded in imports of certain goods, in particular steel, cement, aluminum, and fertilizers.
To ensure legal and technical clarity ahead of full implementation, the Commission has launched public consultations on key aspects of the CBAM framework. These consultations will guide the drafting of three implementing acts covering:
- The methodology for calculating embedded CO₂ emissions – including rules for determining direct and indirect emissions, use of actual production data, and the application of default values. The goal is to ensure consistency while minimizing the administrative burden for importers.
- Treatment of free allowances under the EU Emissions Trading System (ETS) – detailing how the gradual phase-out of free allowances between 2026 and 2034 will be reflected in CBAM calculations to preserve fair competition between EU and non-EU producers.
- Recognition of carbon prices paid in third countries – establishing the process by which importers can reduce their CBAM obligations when a carbon price has already been paid abroad, provided credible verification is available.
The consultations aim to address concerns raised by industry stakeholders, including administrative complexity, uncertainty around emission benchmarks (especially for electric arc furnace-produced steel), and a lack of transparency in cost calculation formulas. The Commission has pledged to publish the final implementing acts in the fourth quarter of 2025, following a four-week consultation period.
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