The European Commission (EC) has published the first reference price for Carbon Border Adjustment Mechanism (CBAM) certificates, setting the Q1 2026 level at EUR 75.36 (USD 88.2) per ton.
The price is based on the quarterly average of EU Emissions Trading System (EU ETS) auction clearing prices and will be used to determine carbon cost exposure for goods imported during the first quarter of 2026.
The introduction of a reference price marks a shift from theoretical modelling to practical cost assessment, providing importers with greater clarity on CBAM-related obligations. Under the mechanism, costs are calculated based on embedded emissions in imported goods, adjusted for free allocations and any carbon price paid in the country of origin.
CBAM certificate prices will be published quarterly throughout 2026, with a transition to weekly pricing planned from 2027. However, certificates for 2026 imports will only be purchased from February 2027.
During the initial phase, most emissions remain covered by free allocation adjustments, while importers may report emissions using default values or verified data. Broader adoption of verified emissions reporting is expected from 2027, which could help reduce compliance costs.
The EU’s carbon border levy, launched on January 1, applies to emissions associated with imports such as steel, cement and fertilizers. The mechanism aims to prevent carbon leakage and protect EU producers from competition with lower-cost imports from regions with less stringent climate policies.
1 USD / 0.85 EUR
