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CBAM

Comply with CBAM regulation with ease

Looking for support with UK CBAM or EU CBAM? Get immediate guidance from carbon market specialists.

CBAM compliance fees are rapidly approaching

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Navigating CBAM will be a challenge without specialised support.

If you are a supplier or importer of: cement, iron and steel, aluminium, fertilisers, electricity, and hydrogen products, your costs will soon increase.

Get a clear pathway to ensure your continued commercial success as CBAM comes into effect, with CFP Energy.

    Tim Atkinson, Head of Carbon

    "The introduction of a Carbon Border Adjustment Mechanism (EU from 2026, UK from 2027) will for the first time price the cost of embedded carbon emissions into imports.

    Calculations are complex and require careful consideration of benchmarks and other factors. 

     

    EU CBAM certificates will only be available for sale from February 2027 but given they are based on average EU Allowance (EUA) auction prices (quarterly for 2026, weekly form 2027 onwards), the existing EUA Carbon market can be used as an effective hedge for importers wishing to fix CBAM costs now and reduce price exposure."

    The solution CFP Energy provides

    Industries will face significant cost pressures from CBAM, compounded by rising production costs in Europe driven by other policies and the global economic climate.

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    An Award-winning team ​

    Market-leaders as recognised in the Environmental Finance Awards

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    Flexible financial solutions

    Bespoke and commercially-balanced strategies to manage your CBAM exposure

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    Supply chain support

    Additionally decarbonise your supply chain with biofuels or carbon credits to reduce emissions elsewhere.

    CBAM industries

    CBAM timeline

    CBAM timeline

    Jan 2026

    EC report due by end of 2025 to assess whether additional sectors will be included, as well as potential product scope expansions.


    Full CBAM compliance obligation begins.


    Importers must obtain CBAM authorisation before goods can enter the EU

    Feb 2027

    CBAM certificate sale launches on the EU CBAM registry.

     

    Aug 2027

    Due date to submit the first annual CBAM declaration and surrender the first CBAM certificates for 2026 emissions.

    Nov 2027

    Final chance to request refund on excess CBAM

    certificates bought for the current year.

    Why CFP Energy for CBAM support?

    Regulated, experienced counterparty

     

    Risk-managed delivery backed by a licensed, financially robust firm.

     

    Industry-specific expertise 

     

    Our team operates across the manufacturing, aviation and maritime  sectors, providing specialist support across each industry.

    Track record in carbon delivery

     

    15+ years structuring and settling EUA trades across compliance schemes, now applied to CBAM.

    First-mover advantage

    First-mover access to attractive prices while competition is limited.

    CBAM FAQs

    The Carbon Border Adjustment Mechanism (CBAM) is the EU’s new climate policy tool designed to prevent carbon leakage by applying a carbon price to imports of carbon-intensive goods like steel, cement, aluminium, fertilisers, electricity and hydrogen. CBAM aligns with the EU Emissions Trading System (EU ETS), requiring importers to purchase CBAM certificates that reflect embedded emissions. CBAM meaning is crucial for businesses trading with Europe, as compliance ensures fair competition and drives global decarbonisation.

    CBAM started with a transitional reporting phase in October 2023, requiring quarterly CBAM reporting of embedded emissions for covered products. From January 2026, full CBAM compliance obligations begin, meaning importers must buy and surrender CBAM allowances. This timeline mirrors the EU ETS framework. Understanding when CBAM starts is essential for global exporters, manufacturers, and importers supplying into Europe, as compliance will directly impact trade costs, procurement strategies, and carbon risk management in international supply chains.

    CBAM is directly linked to the EU Emissions Trading System (EU ETS), Europe’s primary carbon pricing mechanism. While the EU ETS applies to domestic producers, CBAM ensures foreign imports face the same carbon costs, creating a level playing field. Importers must purchase CBAM allowances based on the average ETS carbon price. For companies, knowing how CBAM and ETS connect is critical for carbon cost forecasting, compliance planning, and ensuring competitiveness in European industrial supply chains.
    CBAM covers carbon-intensive imports most at risk of carbon leakage, including iron and steel, aluminium, cement, electricity, fertilisers and hydrogen. These sectors were chosen for their high emissions profiles and trade exposure. Businesses importing covered goods into the EU must report emissions data and, from 2026, surrender CBAM certificates. Understanding which products CBAM covers is essential for manufacturers, exporters, and traders adapting procurement strategies, aligning with sustainability requirements, and ensuring future EU market access under CBAM rules.
    CBAM allowances, also called CBAM certificates, are units importers must purchase to cover embedded emissions of goods brought into the EU. Their price is tied to the EU ETS carbon price, fluctuating weekly based on the average ETS auction price. Companies must calculate and report embedded emissions, then buy CBAM allowances to offset. Knowing how CBAM allowances work helps importers and exporters forecast costs, maintain compliance, and integrate carbon pricing into global supply chain strategies.

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