The Carbon Border Adjustment Mechanism (CBAM) has been in place since 2024, but has not yet been fully developed.
We are currently in a transitional period in which the purchase of emission certificates is not yet mandatory. Originally, this was set to change dramatically from 1 January 2026, when certain importers would be required to purchase emission certificates depending on the imported goods’ emissions. However, it has now been announced that the European Union’s (EU) carbon border adjustment mechanism is being simplified. In addition to administrative simplifications, a ‘de minimis’ rule will be introduced.
Our experts discuss these new developments, the new exemption and the situation as from 1 January 2026.
What does CBAM entail?
CBAM is a European environmental tax on imports of certain carbon-intensive products from non-EU countries. This includes products such as hydrogen, cement, electricity, steel and iron, fertilisers and aluminium. A transitional arrangement is in place until 1 January 2026: until then Authorised CBAM Declarants must file annual declarations, but do not yet have to buy compensatory CBAM certificates.
However, from 1 January 2026, companies importing CBAM goods will be required to purchase emission certificates according to the imported goods’ emissions. The EU hopes that this will stimulate the ‘greening’ of non-EU industries and prevent so-called ‘carbon leakage’.
Which rules are being simplified?
Various measures to simplify CBAM and make it more cost-effective have been adopted as part of the European Omnibus I legislative package on sustainability. The main objective of this simplification is to reduce the regulatory and administrative burden as well as compliance costs, particularly for SMEs.
A key simplification offers some relief for smaller importers. The exemption for goods of negligible value has been replaced by a ‘de minimis’ rule, under which imports of up to 50 tonnes (weight of goods) per importer per year will not be subject to CBAM obligations.
Other simplifications have also been introduced, including measures regarding the authorisation procedure, data collection, emission calculation and verification rules. These changes are designed to make the CBAM system more practical, without compromising its original purpose.
CBAM in force from 2026: Authorised CBAM Declarant status required
CBAM will come into full effect from 1 January 2026, after which various additional obligations will come into effect:
Companies within scope of these rules must have Authorised CBAM Declarant status;
Declarants must actually purchase and submit CBAM certificates;
Fines of up to 10% of annual turnover may be imposed in cases of non-compliance.
Companies are in principle also required to file reports based on actual verified emissions data starting from 1 January 2026. The use of so-called ‘default values’ will be severely restricted: these may only be used temporarily in exceptional cases, for example in the case of new suppliers.
Acquiring Authorised CBAM Declarant status
When it becomes apparent that a company will be importing more than 50 tonnes of CBAM goods from 1 January 2026, the company must ensure that it acquires Authorised CBAM Declarant status. There are two options:
Importers within the EU must apply for CBAM status from the competent national authority (in the Netherlands this is the Dutch Emission Authority - NEa).
Non-EU-based importers cannot apply for Authorised CBAM Declarant status directly: their indirect customs representative in the EU must obtain this Authorised CBAM Declarant status for them.
If your company is not registered as an Authorised CBAM Declarant by 1 January 2026, your CBAM goods will not be cleared by customs. For more information on the authorisation process, please refer to the NEa website.
Take action in time!
If your company falls within the scope of CBAM, make sure you meet the authorisation and any other requirements in time, and that you are informed of the rules. This will prevent you having your imports held at the border and will avoid you incurring fines.
If you would like to know more about CBAM and the obligations involved in importing goods, please contact our experts Marisa Hut and Stevie Mols of VAT & Customs Advisory.
The legislation and regulations in this area may be subject to change. We recommend that you discuss the potential impact of this with your Baker Tilly advisor.
