Impacted industry and close observers know that import charges under the EU’s Carbon Border Adjustment Mechanism (CBAM) will begin in a few short months—January 2026. But the EU still has not issued final guidance to clarify how the system will operate, leaving essential questions unresolved. This Get Up to Speed identifies which pieces of necessary regulation have already been released, and our count of 8 additional regulations we’ll need to see before the end of the year to ensure uniform CBAM implementation across industries and member states.
The EU refers to the body of necessary regulations as “secondary legislation,” terminology we embrace here. Legislation will expand on key elements, including CBAM reporting and customs procedures, emissions calculations and defaults, emissions verification, and certificate pricing and trade.
Released: Secondary Legislation on Reporting and Customs Procedures
Importers must register as CBAM declarants to ship their CBAM-covered goods to the EU beginning in 2026. This legislation outlines who can become a CBAM declarant, how to apply, what happens if an application is denied, and under what conditions a declarant’s status can be revoked.
The CBAM registry is the central system through which importers will manage their CBAM obligations, including the purchase and surrender of CBAM certificates. This implementing act clarifies how the registry will handle data, track certificate transactions, and cross-check reported information.
Anticipated: Secondary Legislation on Emissions Calculation and Defaults
- Calculation of embedded emissions and CBAM declarations
The EU has not yet specified how importers should calculate embedded emissions in CBAM-covered goods. Secondary legislation must specify product-specific rules for system boundaries, emission factors, the treatment of actual and default emission values, and data verification (CBAM Regulation, Article 7).
- Defaults for the CBAM definitive period
Not all importers will be able to report actual data on the carbon intensity of imported products, and so the EU is expected to publish product- and country-specific default values that importers may use instead. The European Commission has indicated that the defaults will be informed by estimates released in a 2023 report by the EU’s Joint Research Centre (JRC). The Commission has also alluded to a follow-up JRC study slated for mid-2026 release, after the CBAM charges have begun (CBAM Regulation, Article 7). (See the Center’s analysis on a potential source of more accurate and favorable default values for U.S.-produced steel and aluminum products.)
Anticipated: Secondary Legislation on Emissions Verification
- Verification of embedded emissions
The EU is expected to adapt its existing rules for domestic emissions verification to apply to imported CBAM-covered goods. The secondary legislation will clarify details like when site visits can be waived, how to judge whether an error is significant, and what supporting documents must be included in verification reports (CBAM Regulation, Article 8).
- Accreditation and oversight of verifiers
In addition to guiding data verification procedures, the EU must specify rules by which firms can be accredited as verifiers. Importers will be required to work with these accredited firms to ensure their reported data meets EU standards. Secondary legislation will establish procedures for accrediting, overseeing, and managing verifiers; approving and withdrawing accreditation; and overseeing verifier activities (CBAM Regulation, Article 18).
Anticipated: Secondary Legislation on CBAM Certificate Pricing and Trade
- Carbon price and price of certificates
This implementing act will define how to calculate the average price of CBAM certificates and outline the process for public disclosure. CBAM certificate prices will reflect the market price of allowances traded by domestic energy and industrial facilities that participate in the EU’s Emissions Trading System (ETS) (CBAM Regulation, Article 21).
- Recognition of foreign carbon pricing
The CBAM will offer importers credit for any carbon prices paid in a good’s country of origin. The EU has yet to clarify how foreign carbon prices can be converted into reductions in CBAM certificate obligations, which forms of carbon pricing will be eligible for recognition under the CBAM, how to convert payments made in other currencies into euros, what evidence is required to prove carbon costs were paid, and how to factor in any complementary policies in the country of origin (CBAM Regulation, Article 9).
- Adjustment for free allocation
The CBAM will phase in on imports as free allowances under the EU ETS phase-out for domestic facilities. The EU will establish detailed rules for adjusting the number of CBAM certificates an importer must surrender to reflect free EU ETS allowances given to EU producers of the same goods (CBAM Regulation, Article 31).
- Conditions for the sale and repurchase of CBAM certificates
This delegating act will set detailed rules on how and when CBAM certificates can be sold and repurchased. It will cover the administrative procedures involved and ensure these rules align with existing EU regulations under the ETS (CBAM Regulation, Article 20).