Commission stands firm on CBAM timeline despite industry concerns

The European Commission will not delay CBAM's tax rollout in 2026, according to Martin Becker, one of the CBAM architects, during a recent industry webinar.

Many businesses facing CBAM charges from January 2026 are banking on the Commission slowing down the pace of CBAM. The Commission in turn has made clear that it is open to simplifying CBAM, including raising the minimum threshold (the de minimis) for charges.

But the Definitive Period itself – when CBAM payments begin – will absolutely start on time, Becker said, in a joint webinar on January 8 with CBAMBOO’s CEO, Gabriel Rozenberg.

“There is no intention whatsoever to postpone the entry into force of the CBAM, or the… financial obligation from 1 January 2026,” he said.

“The definitive period will start in 2026 and there’s no indication and no plan to postpone this.”

Meanwhile CBAMBOO used the high-profile webinar to flag up mounting compliance challenges faced by European businesses.

As CBAM moves forwards, CBAMBOO is ready to help clients prepare for the Definitive Period, by getting on top of supply chain data and building a picture of their future tax bills.

Watch the full interaction between Martin Becker and Gabriel here.

UK joins carbon border race with 2027 CBAM launch

Plans for a UK CBAM received a strong boost late last year as the Labour Government published a consultation response detailing its proposals.

Our assessment of the UK CBAM is that it will be fundamentally very similar to the EU model, but with some divergences to keep an eye on.

Notably, the UK will include the requirement for importers to pay charges for indirect emissions, which under EU CBAM as it currently stands are not required for metals importers.

The UK also has a higher threshold than the EU system, of £50,000 of CBAM imports over a 12 month period, and an exemption for products bought for personal use. The UK’s HRMC says that this higher threshold will exempt over 80% of businesses from CBAM, while still maintaining coverage of over 99% of imported emissions.

On the other hand, the UK has converged on the EU model by removing plans to include ceramics and glass from the initial scope. Products that will be covered are iron, steel, aluminium, cement, fertilisers and hydrogen – exactly the same as in the EU, with the exception of electricity which is not covered.

The UK CBAM will not start until January 2027. Industry groups have criticised this decision for setting up a year-long gap between the UK and EU that could lead to dumping of high-carbon imports into the UK.

One year into CBAM, getting supplier data is still the biggest challenge

Importers are struggling to comply with demands for supplier data, figures from the European Commission suggest.

The Commission announced that some 70,000 reports were submitted across the first four quarters of CBAM, with steel being the key industry and accounting for 69% of all submissions.

But when we dug into the figures, we spotted a drop in quarterly submissions in 3Q 2024 – when the requirements for actual supply chain data kicked in.

That fits with the evidence we are hearing from importers that getting supply chain data is a major headache. It's a message reinforced by EU automotive manufacturers earlier this month.

The CBAMBOO Platform streamlines the process of connecting with suppliers. Manufacturers can use the Platform to create their data quickly and easily.

Source: European Commission

CBAM's critical timeline: regulatory clarity coming in 2025

As we count down to the start of the Definitive Period in January 2026, we are expecting to see a flurry of updates that clarify how CBAM will actually work.

The European Commission is set to release crucial implementation guidelines in 2025. These include:

• Clarification of independent verification procedures for supplier data

• Release of authorisation procedures by National Competent Authorities

• Publication of financial benchmarks and certificate purchasing guidelines

One frustration for business leaders: the financial benchmarks won't be published until July at the earliest, according to the Commission's Martin Becker.

We have pressed the Commission on the urgent need for these benchmarks so that companies can calculate their future CBAM liabilities.

Once we get into the Definitive Period, the Commission plans to revise certain aspects of CBAM. Potential changes include:

• Evaluation of sector expansion and inclusion of downstream goods based on carbon leakage sectoral risks

• Revision of indirect emissions rules

These changes are not likely to take place before 2027, however.

Act now or pay later: CBAM default values will cost you more in 2026

There are less than 12 months left before CBAM taxes begin in January 2026.

That means this year is a crucial period for EU importers to gather accurate carbon emissions data and understand their exposure.

In the Definitive Period, default values will be allowed – but they will deliberately overestimate carbon intensity. The only way to bring your costs down will be to get accurate data from suppliers and make comparisons between them.

Our advanced tools for CBAM cost management are now in development. If you'd like to learn more, get in touch.