CBAM glossary

Embedded-emissions data measured at the producing installation and verified by an accredited verifier. Using actual values instead of default values generally gives a more accurate embedded-emissions figure and can reduce the number of certificates due.

Source: Regulation (EU) 2023/956

The goods currently within CBAM scope, listed by CN code in Annex I of the CBAM Regulation. They cover six sectors — cement, iron and steel, aluminium, fertilisers, electricity, and hydrogen — plus certain precursors and some downstream products such as screws and bolts.

Source: Regulation (EU) 2023/956, Annex I

The status an importer (or its indirect customs representative) needs before importing CBAM goods into the EU in the definitive period. Authorisation is applied for through the national competent authority, and only authorised declarants may lodge CBAM declarations and surrender certificates.

Source: Regulation (EU) 2023/956

The EU's carbon-pricing instrument for imports. It puts a carbon price on certain emission-intensive goods entering the EU customs territory, mirroring what EU producers pay under the EU Emissions Trading System, to reduce the risk of carbon leakage.

Source: Regulation (EU) 2023/956

The instrument importers purchase and surrender to cover the embedded emissions of their CBAM goods. Each certificate corresponds to one tonne of CO₂-equivalent, and its price is derived from EU ETS allowance prices. Certificate sales begin on 1 February 2027.

Source: Regulation (EU) 2023/956; Regulation (EU) 2025/2083

The annual declaration an authorised CBAM declarant submits, covering the previous calendar year's imports of CBAM goods, their embedded emissions, and the certificates surrendered against them. The first declaration, covering 2026 imports, is due by 30 September 2027.

Source: Regulation (EU) 2025/2083

The percentage that scales CBAM obligations during the phase-in, while EU producers still receive some free EU ETS allocation. It starts low in 2026 and rises until CBAM applies in full by 2034, keeping imports and EU production on a comparable footing during the transition.

Source: Regulation (EU) 2023/956

The central electronic database operated by the European Commission where authorised CBAM declarants hold their accounts, manage certificates, and submit declarations.

Source: Regulation (EU) 2023/956

An eight-digit code from the EU's Combined Nomenclature that classifies goods for customs purposes. CBAM scope is defined by CN codes: whether an imported product is covered depends on the code it is declared under. TARIC codes extend CN codes with two further digits for EU-specific measures.

Source: Regulation (EEC) No 2658/87 (Combined Nomenclature)

A voluntary template published by the European Commission that operators and importers can use to exchange embedded-emissions data along the supply chain. It standardises what information a producer sends to the EU importer; using it is not mandatory.

Source: European Commission (DG TAXUD)

CBAM goods produced using precursor materials that are themselves CBAM goods. Their embedded emissions include the emissions of those precursors, not just the final production step.

Source: Regulation (EU) 2023/956

An exemption introduced by Regulation (EU) 2025/2083: importers whose CBAM goods stay under 50 tonnes of cumulative net mass per importer (legal entity) per calendar year fall outside the main CBAM obligations. The threshold is mass-based, counts all CBAM goods together, and does not apply to electricity or hydrogen.

Source: Regulation (EU) 2025/2083

Fallback emission values published by the European Commission that importers can use when verified actual emissions data is not available from the producer. They are set per product and country and are deliberately conservative, so relying on them can mean surrendering more certificates than actual data would require.

Source: Implementing Regulation (EU) 2025/2621

CBAM's live financial phase, which began on 1 January 2026. From this point importing CBAM goods requires authorisation, and the obligation to buy and surrender CBAM certificates applies to covered imports.

Source: Regulation (EU) 2023/956 (as amended)

A European Commission proposal to extend CBAM to further downstream products — around 180 additional product categories — from 1 January 2028.

This reflects a legislative proposal (e.g. COM(2025)989) that has not been adopted. Scope, product lists, and dates may change or may not enter into force.

Source: COM(2025)989 (European Commission proposal)

The greenhouse-gas emissions released in producing a good, expressed per tonne of that good. They include direct emissions from the production process and, for most goods, indirect emissions from the electricity consumed in production.

Source: Regulation (EU) 2023/956

The Economic Operators Registration and Identification number every business needs to interact with EU customs. CBAM obligations — and the de-minimis threshold — attach to the importing legal entity identified by its EORI number.

Source: Regulation (EU) No 952/2013 (Union Customs Code)

The EU's cap-and-trade carbon market, in place since 2005, where power generators, industry, and aviation buy and trade emission allowances. CBAM mirrors the ETS carbon price at the border: CBAM certificate prices are derived from ETS allowance auction prices.

Source: Directive 2003/87/EC

EU producers in CBAM sectors have historically received part of their EU ETS allowances for free as protection against carbon leakage. As CBAM ramps up, this free allocation is progressively withdrawn, so that border carbon pricing replaces free allowances.

Source: Directive 2003/87/EC (as amended)

A customs representative who lodges import declarations in their own name on behalf of an importer. Under CBAM, an indirect customs representative can, in defined cases — for example where the importer is not established in the EU — take on the CBAM obligations instead of the importer.

Source: Regulation (EU) 2023/956; Regulation (EU) No 952/2013

The body each EU member state designates to administer CBAM nationally. It handles authorised-CBAM-declarant applications and is the first point of contact for importers established in that member state.

Source: Regulation (EU) 2023/956

The 2025 amending regulation that simplified CBAM ahead of the definitive period — most notably introducing the 50-tonne de-minimis threshold and adjusting the certificate-sales and declaration calendar.

Source: Regulation (EU) 2025/2083

An input material that is itself a CBAM good and is used in producing another CBAM good — for example, pig iron used in steelmaking. The embedded emissions of precursors count toward the embedded emissions of the finished (complex) good.

Source: Regulation (EU) 2023/956

The rule that authorised CBAM declarants keep a minimum number of certificates in their Registry account during the year, checked at the end of each quarter, rather than buying everything just before the annual deadline. The required share is set in the CBAM rulebook and was adjusted by the 2025 Omnibus amendments.

Source: Regulation (EU) 2025/2083

The act of handing in CBAM certificates against the embedded emissions declared for a year, done through the CBAM Registry as part of the annual declaration cycle. Surrendered certificates are cancelled.

Source: Regulation (EU) 2023/956

CBAM's reporting-only phase, which ran from October 2023 to the end of 2025. Importers reported the embedded emissions of covered goods quarterly, but did not buy or surrender certificates and made no CBAM payments.

Source: Regulation (EU) 2023/956