EU CBAM regulations introduce new certificate obligations for importers in 2027

Starting in February 2027, the European Union’s Carbon Border Adjustment Mechanism (CBAM) will enter a regular phase, imposing new administrative and financial obligations on importers. Member states will begin selling CBAM certificates through a central platform, with prices tied to the weighted average auction prices of the EU Emissions Trading System (EU ETS). Unlike the 2026 period where prices are updated quarterly, prices from 2027 will be updated weekly.

Importers face a dual obligation in 2027. By September 30, 2027, companies must settle obligations related to 2026 imports. Simultaneously, a new quarterly requirement begins on March 31, 2027, requiring authorized declarants to hold certificates on their accounts corresponding to at least 50% of the embedded emissions from goods imported since the start of the year. The financial burden will scale linearly from 2.5% in 2026 toward 100% by 2034.

Effective planning will require continuous monitoring of import volumes, emission levels, and certificate accounts. While importers may request a buyback of surplus certificates once a year, any certificates not surrendered or included in a buyback request will be canceled on November 1 without compensation. The mechanism specifically targets sectors including steel, aluminum, cement, fertilizers, hydrogen, and electricity.