CBAMBOO today introduces the Pass-through Agreement for CBAM Costs (PACC™), a standardised contract that allows importers to reliably pass on their CBAM costs to their customers.

Starting 1 January 2026, the EU’s Carbon Border Adjustment Mechanism requires payment of a carbon price on a per-tonne basis for imports of steel, aluminium and other commodities. Frequently, the payer of CBAM charges is a trader who sells the imports on to an end-customer inside the EU. These traders need legal certainty that their end-customer will compensate them for the CBAM charges. 

However, owing to the unique way that the EU CBAM operates, it can be legally complex to pass on these costs. Calculating CBAM charges requires both supply chain emissions data, which can be uncertain, and carbon prices, which fluctuate constantly. In the face of this uncertainty, end- customers are often reluctant to indemnify traders for their CBAM costs, which in turn causes imports to halt. 

The PACC solves these problems. Its balanced terms mean that each side in a transaction will be treated fairly. The importer can offset all reasonable CBAM costs and thus clear customs with confidence. Their customer can be confident that the importer charges them the best available CBAM price, and that their downside risk from carbon price swings is capped.

Gabriel Rozenberg, CEO of CBAMBOO, said:

“Our customers asked us for a way to pass on CBAM charges to the company in the chain that is best able to pay. We created a contract and wanted to make it an open access document so that everyone can take advantage of its benefits."

“In the face of CBAM uncertainty, the CBAMBOO PACC will get markets moving.” 

At CBAMBOO, we plan to keep the CBAMBOO PACC regularly updated as both the CBAM and industry best practice evolves. We therefore encourage feedback from market participants on the terms of the document, which can be sent to hello@cbamboo.com. 

The concept of the CBAMBOO PACC is inspired by the Y Combinator safe note, a flexible template contract that is designed to take into account the interests of both parties. As with the safe note, the CBAMBOO PACC favours simplicity over an attempt to account for every situation, and is intended to be a starting point for further modification if required. 

The CBAMBOO PACC is an open access resource that is made available under the Creative Commons Attribution-NoDerivatives 4.0 Licence. Everyone is free to copy and use this contract to achieve their goals.

Contact details

Gabriel Rozenberg, CEO & Founder, gabriel@cbamboo.com

Disclaimer

This is not legal advice. CBAMBOO does not assume responsibility for the contents of the PACC or for the consequences of using this contract. It is essential that you consult with a lawyer in your country before you agree a PACC with a counterparty.