From 1 January 2026, the Carbon Border Adjustment Mechanism (CBAM) will no longer be limited to transitional reporting but will move into full effect, including financial obligations for carbon-intensive imports. While crude oil itself is not explicitly listed in Annex I of Regulation (EU) 2023/956, oil derivatives and refined products fall into the scope of transitional monitoring and verification. This creates indirect exposure for crude traders, as refiners will pass compliance costs upstream through feedstock sourcing and long-term supply agreements.
In the transitional period (2023–2025), importers are already required to submit quarterly emissions reports verified under EU rules. The methodology aligns with the EU ETS, ensuring comparability across borders. For crude oil traders, this means emissions data integrity is no longer a “nice to have” but a commercial necessity, influencing both pricing and eligibility in tenders.
By 2026, CBAM certificates will need to be surrendered, with prices linked to the EU ETS allowance market (currently trading in the €60–€80/tCO₂ range). This will embed carbon price signals into crude supply economics in Europe. Traders who anticipate this shift — by integrating robust emissions reporting systems and negotiating transparent contractual clauses with suppliers — will maintain market access and avoid pricing shocks.