The EU CBAM entered its ‘definitive’ phase on 1 January 2026. This brief explains how CBAM supports EU carbon pricing, its implementation status, and implications for international carbon markets, climate negotiations, and trade policy.

The EU CBAM – the first international mechanism to prevent carbon leakage of its kind – has entered its ‘definitive phase’ on 1 January 2026, after a three-year ‘reporting only’ phase. Companies importing CBAM-eligible goods from six sectors (steel, aluminium, cement, fertilizers, electricity, and hydrogen) into the EU now need to pay a cost related to the amount of ‘embedded carbon’ within these goods. 

This investor brief explains how CBAM supports EU carbon pricing, how it works and differs from tariffs, status quo and implementation timeline, and potential climate and trade policy impacts. It also provides an overview on global carbon market developments and how these may be affected by CBAM. 

Download it in full below.

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