The global landscape of decarbonization is undergoing a radical shift, driven by the European Union’s implementation of the Carbon Border Adjustment Mechanism (CBAM). Importantly, its definitive phase begins next month, with compliance obligations and fees starting on January 1, 2026.
CBAM is set to transform global commerce by charging a fee on the embodied carbon found in imports from six hard-to-abate sectors, including cement, aluminum, electricity, hydrogen, fertilizers, and iron and steel. Importers will be subject to a fee pegged to the EU Emissions Trading Scheme (EU ETS), where allowances currently trade around $90 per ton of carbon dioxide equivalent.
The Supply Chain Ripple Effect
The EU CBAM’s impact stretches far beyond these covered materials. The mandatory reporting requirements (which began in 2023) are spurring companies that import steel and other covered products into the EU to demand detailed greenhouse gas (GHG) numbers from their suppliers. This demand for accurate emissions data creates a powerful ripple effect through international commerce.
As ClearBlue Markets' Chief Market Intelligence Officer, Jennifer McIsaac, noted when speaking about the mandatory data gathering: “It resonates through the entire supply chain.”. This means carbon risk is rapidly moving from being a mere footnote in a sustainability report to a critical factor impacting a business's profit and loss.
For companies facing these complex obligations, strategic planning is essential. ClearBlue Markets is helping importers and exporters move beyond simple reporting to strategic CBAM cost forecasting and long-term competitiveness planning through tools like CBAM Market Insights, which provides proprietary near- and long-term price forecasts linked to EU ETS auctions.
To fully understand how CBAM will reshape competition, procurement strategies, and even the voluntary carbon market, we encourage you to read the full article by Jim Giles at Trellis, "Global decarbonization efforts are about to be reshaped by the EU," where Jennifer McIsaac offers more expert insight.