CBAM (Carbon Border Adjustment Mechanism) is the EU mechanism that charges for the carbon embedded in imported products such as steel, aluminium, cement and fertilisers. It entered its definitive phase on 1 January 2026; the obligation to purchase certificates was pushed to February 2027, covering 2026 imports. Importers below 50 tonnes a year are exempt.
Why it matters: a carbon price already paid in the country of origin can be deducted from CBAM, which makes Brazil’s SBCE directly relevant for anyone exporting these goods to Europe.