Frequently asked questions
CBAM, answered.
The questions SME importers actually ask before buying CBAM compliance software. Updated for the 2026 definitive period and the UK CBAM going live in 2027.
What is CBAM?
The Carbon Border Adjustment Mechanism (CBAM) is an EU regulation (Reg. (EU) 2023/956) that prices the carbon embedded in imports of steel, aluminium, cement, fertilisers, hydrogen and electricity. The transitional reporting period ran 2023–2025; the definitive period — with mandatory CBAM certificate purchases — began on 1 January 2026.
What is an Authorised CBAM Declarant (ACD)?
Under Article 5 of Reg. (EU) 2023/956, only Authorised CBAM Declarants may release CBAM goods into free circulation in the EU. Authorisation is granted by the National Competent Authority (NCA) of the importer's Member State of establishment.
Who needs to apply for Authorised CBAM Declarant status?
Any EU-established business importing more than 50 tonnes per year (aggregated across all CBAM-scope CN codes) of steel, aluminium, cement or fertilisers. There is NO threshold for hydrogen and electricity.
How long does the NCA application take?
Carbon Border generates the full pack in under 30 minutes from completion of KYC. NCA review timelines vary by Member State, typically 2 to 12 weeks.
What is a CBAM certificate and how is it priced?
Each CBAM certificate represents 1 tonne of CO₂ equivalent. The price is set as the average weekly clearing price of EU ETS allowance auctions on the Common Auction Platform.
What happens if my supplier won't share emissions data?
You may use the EU default embedded emissions value, which carries a +10% markup in 2026. Carbon Border's supplier portal makes the data request a 5-minute task for the producer.
How long must I keep CBAM records?
Article 30 of Reg. (EU) 2023/956 requires Authorised CBAM Declarants to retain all declarations, supporting evidence and supplier verification statements in machine-readable form for 5 years from the year of import.
When does UK CBAM start?
The UK CBAM begins on 1 January 2027 and covers iron and steel, aluminium, cement, fertilisers and hydrogen. Carbon Border maintains a single supplier and shipment ledger covering both EU and UK declarations.
What does Carbon Border charge?
A one-time €1,499 fee for the NCA Application Pack, then a metered Compliance Engine subscription covering shipment logging, supplier emissions collection, automated quarterly bundle generation and certificate procurement.
Are indirect importers covered?
Yes. Where a customs representative acts as indirect representative, the underlying importer of record is the ACD-required party. Carbon Border supports both direct and indirect representation flows.