Quick answer
From 2026 an EU importer of cement, iron and steel, aluminium, fertilisers or hydrogen must buy CBAM certificates for the emissions embedded in the goods. The cost is (embedded emissions − free allocation) × certificate price. With default values the emissions get a mark-up (10% in 2026, 20% in 2027, 30% from 2028; 1% for fertilisers), and the free allocation shrinks each year until it reaches zero in 2034. The importer, not the exporter, pays; an importer with less than 50 tonnes of CBAM goods a year (hydrogen excepted) may be exempt. Example: Türkiye-origin semi-finished steel (CN 7207 11 14) in 2026 at the Q3 price of €82.32 costs about €99.7 per tonne with default values.
Last updated: 29 October 2026
How the cost is calculated
- Embedded emissions = default value (t CO₂e per tonne of product, per country) × (1 + mark-up).
- Free allocation = CBAM factor × benchmark × tonnes (the CSCF is 100% for 2026–2030).
- Certificates = embedded emissions − free allocation (never below zero).
- Cost = certificates × certificate price. A carbon price actually paid in the country of origin can be deducted.
CBAM factor and mark-up by year
| Year | CBAM factor (free allocation) | Mark-up: cement, iron & steel, aluminium, hydrogen | Mark-up: fertilisers |
|---|---|---|---|
| 2026 | 97.5% | 10% | 1% |
| 2027 | 95% | 20% | 1% |
| 2028 | 90% | 30% | 1% |
| 2029 | 77.5% | 30% | 1% |
| 2030 | 51.5% | 30% | 1% |
| 2031 | 39% | 30% | 1% |
| 2032 | 26.5% | 30% | 1% |
| 2033 | 14% | 30% | 1% |
| 2034 | 0% | 30% | 1% |
2026 certificate prices
| Quarter | Price (€ / t CO₂e) | Published |
|---|---|---|
| Q1 | 75.36 | 7 April 2026 |
| Q2 | 75.28 | 6 July 2026 |
| Q3 | 82.32 | 5 October 2026 |
Using actual emissions
Producers with verified actual emission data can use it instead of default values, which usually lowers the cost. The default values are set per product and country of origin; where a country has no value, the "other countries" value applies.
Frequently asked questions
What is CBAM?
The EU Carbon Border Adjustment Mechanism: importers of cement, iron and steel, aluminium, fertilisers and hydrogen buy certificates for the CO₂ embedded in the goods, so imports carry a carbon cost comparable to EU production.
Who pays CBAM?
The importer in the EU (the authorised CBAM declarant). The cost usually shows up in price negotiations with the exporter.
Is there a minimum threshold?
An importer whose CBAM imports are below 50 tonnes a year (hydrogen excepted) may be exempt.
How much is the CBAM mark-up on default values?
10% in 2026, 20% in 2027 and 30% from 2028 for cement, iron and steel, aluminium and hydrogen; 1% for fertilisers.
When does the free allocation end?
The CBAM factor falls from 97.5% in 2026 to 14% in 2033 and 0 from 2034, so from 2034 certificates are due on all embedded emissions.