CBAM certificate price rules have been made stricter and mandatory from January 2026. Here is a look at specific rules and how it impacts suppliers and EU buyers.
CBAM certificate price rules have been published by the European Union Commission in the latest updates. One of the most critical things to remember is the fact that any Carbon price paid by the supplier in the country of origin can be deducted and readjusted under the CBAM. For example, if you (steel exporter) have paid the applicable carbon tax in India and you export to the EU, then you either don’t have to pay or that applicable amount can be readjusted under the CBAM. This prevents double carbon taxation. Here is a look at CBAM certificate price rules:
CBAM Certificate Price Calculation Rules for Exporters and Importers
From January 1, 2026, the EU buyers are mandated to calculate their CBAM prices and purchase CBAM certificates. And importers now need to hold CBAM certificates equal to 50% of year-to-date embedded emissions at each quarter-end (earlier 80%). However, carbon price can be readjusted as importers can deduct any carbon price already paid in the country of origin — but only with certified evidence. This means, if the supplier for a CBAM listed product has paid applicable Carbon tax in the country of origin, then the price for that can be readjusted under the CBAM provisions and the importer does not need to pay double tax under the CBAM certificate price rules.
CBAM Certificates Pricing:
Clear Price Indication:
CBAM Certificate Price Rules for 2026
- From January 2026, the Commission will calculate CBAM certificate price for each quarter as the quarterly average auction clearing prices under the EU ETS. These prices will be calculated during the first calendar week of every quarter.
- In 2026, the quarterly CBAM certificate price will be calculated.
- The relevant auction platforms shall provide all the required information for calculating the CBAM certificate prices for that quarter.
CBAM Certificate Price Rules for 2027
- From January 1, 2027, the CBAM certificate price will be calculated every calendar week on the basis of the weekly average of EU ETS allowance prices.
- Price of CBAM certificates will apply to all CBAM certificates sold to Authorised CBAM Declarants.
- Under the CBAM certificate price rules, the Commission will publish all CBAM certificate prices on its official website on the first working day.
- Price of CBAM certificates will be made available only to Authorised CBAM Declarants.
How Default Values Can Increase CBAM Certificate Price?
Use of default values under the CBAM can drastically increase CBAM certificate price for all the exported products to the EU from January, 2026. By design, the EU has published extremely high default values for different countries and companies that export to European countries. This is a deliberate design to prevent carbon leakage and discourage use of default values by suppliers and EU importers.
From January, 2026, any supplier and importer using the default values will always mean paying more carbon tax than applicable on actual emissions. Moreover, suppliers and importers have to pay additional marks ups of 10% to 20% on the use of default values depending on different benchmarks given for different CN/HSN Code products and sectors. All of these add up immensely to the carbon tax during the calculation of CBAM certificate price.
How to pay less through CBAM certificate price?
Under the CBAM certificate price rules obligation, suppliers and importers are faced with many challenges. To calculate accurate CBAM certificate price, actual embedded emissions should be factored in. There should be negligible reliance on default values that inflates CBAM certificate price. Cleancarbon.ai’s advanced dashboard and highly precise data collection methods can help forecast CBAM certificate prices and also recommend ways to reduce the prices.
