European Commission Confirms First Quarterly CBAM Certificate Price for Q1 2026

On April 7, 2026, the European Commission announced that the first quarterly price for Carbon Border Adjustment Mechanism (CBAM) certificates has been set at €75.36 per tonne of CO2 equivalent for the first quarter of 2026, defining the carbon cost that importers will face when importing goods into the EU during the first quarter of 2026.

This price reflects the average closing price of EU Emissions Trading System (EU ETS) allowances auctioned via the European Energy Exchange between January and March 2026, ensuring that the cost of importing carbon-intensive goods aligns closely with that of domestically produced goods within the EU.

Importers will need to purchase CBAM certificates starting in February 2027 to cover the embedded emissions in goods imported in 2026, thereby aligning import costs with the carbon price paid by EU domestic producers under the EU ETS.

Earlier, EU Allowances (EUA) had fallen by nearly €30 per tonne of CO2 equivalent in the first quarter, following calls from several member states to weaken the EU ETS in order to enhance the EU's industrial competitiveness.

Following the end of the transitional reporting period, the definitive phase of the CBAM began on January 1, 2026. The mechanism applies to imports of steel, aluminum, cement, hydrogen, fertilizers, and electricity, and aims to prevent carbon leakage, where companies might relocate production to regions with weaker climate policies.

The quarterly pricing structure applies only for 2026. The European Commission will calculate and publish prices for the second, third, and fourth quarters on July 6, 2026, October 5, 2026, and January 4, 2027, respectively. Starting in February 2027, the Commission stated that CBAM certificate pricing will shift to a weekly calculation, with the price determined by the volume-weighted average of EUA auction clearing prices. From that point, all certificates will be purchased through a unified central platform in accordance with Article 20 of the CBAM Regulation.

The European Commission launched a tender for this platform in March, with the bidding deadline set for April 6. The platform will be responsible for managing the purchase and sale of CBAM certificates.