EU Advances Carbon Border Adjustment Mechanism with New CBAM Legislation

EU CBAM Legislation Signals Major Shift for Metal Importers

The European Union has taken a decisive step forward in global carbon trade policy. On February 26, it introduced new legislation aimed at streamlining the Carbon Border Adjustment Mechanism (CBAM). The updates mark a shift from policy design to implementation, targeting steel, aluminum, and other carbon-intensive imports.

Key changes in the CBAM legislative package include the omnibus package, authorization rules for CBAM declarants, and a targeted Steel and Metals Action Plan. These documents clarify operational rules, reduce reporting burdens, and strengthen the EU’s decarbonization goals under the Green Deal. The omnibus package introduces a 50-ton threshold to exempt 90% of importers while still capturing 99% of embedded emissions.

Additionally, the CBAM rollout now includes a delayed initial compliance deadline—extended from May 31 to August 31, 2027. The legislation also reduces the certificate holding requirement from 80% to 50%, offering flexibility to CBAM declarants and improving integration with related EU sustainability laws like CSRD and CSDDD.

CBAM Authorization Now Mandatory for Metal Imports by 2026

Importers of covered goods must act now to ensure continued access to the EU market. Starting January 1, 2026, only authorized CBAM declarants may import CBAM-regulated materials into the EU. Businesses must submit detailed applications through their national CBAM registry, demonstrating financial capacity and legal compliance.

The European Commission’s new implementing regulation, adopted on March 18, outlines a 120–180-day review process and introduces stricter rules for high-risk applicants. Noncompliant firms risk losing import rights and facing penalties. The EU will also publish default carbon prices for non-EU countries, simplifying reporting for third-country carbon pricing.

Finally, the Steel and Metals Action Plan, published March 19, connects CBAM directly to EU industrial strategy. It aims to prevent carbon leakage and encourage global decarbonization. The plan reinforces that CBAM compliance is not optional and signals future expansion to downstream products like fabricated steel or finished aluminum parts.

SuperMetalPrice Commentary:

The EU’s updated CBAM legislation creates a clear roadmap for the metals industry—from regulatory clarity to environmental accountability. These rules balance trade competitiveness with climate integrity, putting pressure on global producers to modernize. For importers, early compliance means market continuity. For exporters, it’s an opportunity to align with a carbon-conscious future. As CBAM expands, firms equipped with verified emissions data and traceable supply chains will lead the charge in a reshaped, low-carbon metals market.