EU CBAM Carbon Tariff & Default Values (2026 Guide)
By Sustainability Awakening • Dr. Ahmad Mahmood
1. EU Reg 2023/956
Definitive Period 2026
EU CBAM moves from quarterly reports to annual declarations.
2. Covered Sectors
Steel, Aluminum & Cement
Covers steel, aluminum, cement, fertilizers, power, and H2.
3. Embedded Carbon
Tonnes CO2e per Tonne
Importers track direct process emissions and input precursors.
4. Actual vs Default
Primary Plant Data
Verified supplier plant data avoids punitive default markups.
5. Free Allocation
2026 to 2034 Phase-Out
CBAM liability rises as EU ETS free allocation phases down.
6. Certificate Price
Linked to EU ETS Price
Certificate prices track EU ETS allowance auction prices.
7. Carbon Price Paid
Origin Country Credit
Verified carbon prices paid abroad cut net CBAM certificates.
8. Cleaner Production
Electric Arc & Solar
Switching from coal blast furnaces to EAF cuts tariff costs.
9. Accredited Audit
Annual Verification
Definitive period declarations require accredited verification.
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