The EU Carbon Border Adjustment Mechanism (CBAM) will move from transitional reporting to full implementation on 1 January 2026. From this date onward, importers of goods covered by CBAM will be required not only to submit verified emissions reports but also to purchase and surrender CBAM certificates linked to the EU Emissions Trading System (EU ETS).
While CBAM does not extend to all categories of energy-related goods, its regulatory scope explicitly covers a range of petrochemical and energy-intensive products. As full CBAM obligations begin, importers will face a transition from administrative reporting to financial compliance exposure.
During the 2023–2025 transitional phase, importers have been required to submit quarterly emissions reports based on methodologies aligned with the EU ETS. With the mechanism becoming fully operational in 2026, the surrender of CBAM certificates will become mandatory, embedding carbon-cost accountability into cross-border trade for energy-intensive and petrochemical value chains.
Full CBAM enforcement is expected to alter procurement strategies, pricing structures, and long-term supply arrangements across the affected sectors, driving increased demand for emissions transparency, verified data, and contract-level clarity.