Commission confirms CBAM launch for 2026, introduces key simplification

The European Commission has brushed aside calls for a delay to CBAM, and confirmed the planned launch date of 1 January 2026 for the Definitive Period.

Speaking at the CBAM for Climate conference in Paris on 12 February, top EU officials and two French ministers reaffirmed their commitment to the policy.

The conference drew a line under a period of uncertainty that began when members of the European People's Party called for a postponement of several flagship climate regulations, including CBAM. That in turn drew a strong response from industry associations who voiced their strong support for the timely implementation of CBAM.

At the same time, the so-called Omnibus Package, expected to be published later this month, will introduce a key simplification to CBAM: a carbon-based de minimis threshold (see next article). This will be a welcome simplification for small-scale importers.

Despite simplifications, suppliers must get used to strict emissions data requirements. Gerassimos Thomas, Director-General of DG TAXUD (European Commission), told the conference:

"One thing will not go away from simplification: we need to know suppliers. It is now a matter of competitiveness and geopolitical security to know your supply chain."

EU-based importers must prepare for tough verification rules, ensuring emissions data is accurate and auditable. Early engagement with suppliers will smooth compliance and reduce costs.

You can watch the replay of the Paris CBAM for Climate Conference here.

New 100 tonne threshold: CBAMBOO first with the news!

The threshold for CBAM will rise to 100 tonnes per year of CO₂e, the European Commission is privately telling stakeholders.

CBAMBOO was the first organisation to report on the closed-door briefings earlier this month, with specialist news sources later confirming the information.

This shift from the current €150 minimum import value is set to reduce administrative burdens for 80% of importers, mostly smaller and occasional traders, while still covering 90% of emissions.

To make compliance easier, embedded carbon will be converted into a weight-based equivalent, simplifying calculations for importers.

The Financial Times had also reported Climate Commissioner Wopke Hoekstra’s intention to simplify CBAM following a closed-door stakeholder meeting.

The move aligns with industry expectations. During a CBAMBOO webinar with the European Commission last month, businesses called for a more practical and impact-driven approach to CBAM exemption threshold.

Speaking to OPIS, Gabriel said:

“It will be very helpful for low volume importers to know definitively that they’re not covered by CBAM. The flip side of that is that higher volume importers should expect enforcement to strengthen as a result of this new higher threshold of CBAM compliance.”

UK-EU ETS linkage: a game changer for CBAM Compliance?

The UK is exploring linking its Emissions Trading Scheme (ETS) with the EU’s, a move that could significantly reduce administrative burdens for businesses operating across both regions.

If agreed, the linkage could exempt UK exporters from CBAM fees and additional carbon reporting when selling into the EU.

Under the EU CBAM, jurisdictions with an ETS that is linked to the EU’s can in theory become exempt from carbon border charges. However, past ETS linkages suggest complexities remain. Switzerland, for example, has a linked ETS but no CBAM, meaning that third-country imports still face different carbon charges.

Following the news of potential linkage, UK Allowance (UKA) prices surged 30% in one week, reaching a multi-month high of £45.50.

Since Brexit, the UK has operated its own ETS, but carbon prices have diverged significantly. In 2023, the UK ETS had an average auction price of £53.36 (€62.50), compared to €83.24 in the EU, according to data from Redshaw Advisors. A linked ETS would align these prices overnight, potentially reducing trade frictions.

Source: Redshaw Advisors

Beyond compliance: how Stainless Steel Services turned CBAM into a business advantage

Many businesses saw the introduction of CBAM in 2023 as a headache. Stainless Steel Services, a UK-based stockholder and processor, saw it as an opportunity.

While many non-EU suppliers still struggle with CBAM obligations, Stainless Steel Services (SSS) has taken a proactive stance by working with CBAMBOO from the early days of the regulation.

Lesley Rowley, Managing Director of Finance & Purchasing, said:

“I knew we needed support, and having a calculation platform was essential—we couldn't have gathered and managed our CBAM data without it.”

This commitment has paid off. Being a supplier that actively engages with CBAM has set SSS apart from most of their customers' suppliers. As a result, they have seen a rise in customer trust and demand. Over 10% of their clients have already reached out for support, with more expected as awareness of CBAM grows.

Looking ahead, SSS are already preparing for the UK’s CBAM, set to launch in 2027. With UK regulations expected to align closely with the EU model but introduce unique requirements, early preparation is key. By embedding CBAM into sales discussions and customer interactions now, SSS have ensured a smooth transition when the UK system comes into force.

For SSS, working with CBAMBOO has been a game-changer. With the CBAMBOO Platform, compliance becomes a strategic advantage — proving that businesses that act early can gain more than just peace of mind.

“Working with CBAMBOO was absolutely the right decision. Their support has been invaluable, which is why I’m recommending them to all our suppliers and customers. I tell them, ‘Get in touch with CBAMBOO—they can help you.’ I’m a proud ambassador for CBAMBOO.”

Remember: suppliers to EU markets can now sign up for the CBAMBOO Platform free of charge!

The CBAM opportunity in a trade war

As trade tensions escalate, Canada is positioning CBAM as both an economic shield and an alternative to its consumer carbon tax.

Mark Carney, the Liberal Party leadership candidate and a former Governor of the Bank of Canada, has proposed a Canadian CBAM.

He argues that a CBAM will strengthen the economy, cut US fossil fuel reliance, and align with global climate leaders like the EU and UK to create mutual economic opportunities.

Carney’s proposal comes as the US reintroduced 25% tariffs on steel and aluminium imports. Retaliation could take the form of a carbon border tax protecting domestic low-carbon industries while penalising high-carbon US goods.

While US tariffs might hurt Canadian threaten Canadian steel and aluminium exporters, a new global CBAM regime offers a unique opportunity. Canada’s low-carbon producers could reposition themselves as key EU suppliers, shifting trade away from the US.

As the world’s fourth-largest aluminium producer, Canada relies heavily on the US, sending 90% of its aluminium exports there in 2023, compared to just 3% to the EU. Canadian steel also has the lowest carbon footprint among major producers, making it well-placed to benefit from carbon-based trade rules.

Canada’s proposal signals a shift towards a growing "carbon club"— a coalition of economies using carbon pricing at the border to drive competitiveness — making it harder for high-carbon producers like the US to maintain an advantage.