Container ship at industrial port

EU CBAM Carbon Tariff & Default Values (2026 Guide)

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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