The EU's carbon border adjustment mechanism (CBAM) certificate price is calculated at €75.28/t of CO2 equivalent (CO2e) for the second quarter of 2026, just slightly lower than the price for the first quarter.
This was calculated using a weighted average of the EU emissions trading system (ETS) auction clearing prices over the period and is a touch below the price for the first quarter, which stood at €75.36/t CO2e. The European Commission is set to formally confirm the second-quarter price on 6 July.
The commission will use the same methodology to calculate certificate prices for the remaining quarters of 2026, but from 2027 it will switch to a weekly average auction-based calculation. The CBAM certificate price for the third quarter will be published on 5 October and for the fourth quarter on 4 January.
The CBAM certificate price reflects the costs for embedded emissions that importers need to pay for CBAM goods. The mechanism was implemented at the beginning of 2026 and is aimed at creating a level playing field between EU producers of the same goods — that are obligated under the EU ETS — and importers that operate in jurisdictions with weaker or no carbon prices. But CBAM declarants will be able to deduct any effective carbon price paid in a non-EU country. The commission opened a related draft implementing act in May for consultation.
The commission proposed including all forms of compliance options allowed in the relevant country in the calculation, including carbon credits. But while domestic credits could be counted with no additional criteria, only international credits issued under Article 6 of the Paris agreement should be counted, according to the draft, with the latter allowed to count for only up to 10pc of total embedded emissions.
Some industrial firms urged the commission to publish a country-by-country list of carbon pricing instruments eligible for deductions to boost transparency, citing uneven development of global carbon markets and the need for consistent treatment across jurisdictions.
The bloc is working on acts proposed in late December that will address some of the loopholes in the CBAM scheme, such as extending the CBAM rules to downstream products, maintaining export competitiveness and including pre-consumer scrap in the CBAM goods list for steel and aluminium.
EU member states agreed on 12 June to extend the scope of CBAM to 200 more downstream products in addition to the 180 goods proposed in December. The changes are expected to become effective from the start of 2028 and the commission will conduct an annual review to assess additional downstream products for possible inclusion, it said.
The European Council also formalised its position regarding the addition of Article 27a to the CBAM regulation, which would allow for goods in a specific sector to be made exempt from the CBAM goods list if facing "unforeseen and serious" circumstances that severely harm the bloc's internal market. Such a measure could be triggered if prices exceed the 10-year average by more than 50pc for at least six months, the council said.
Both EU member states and the European Parliament must negotiate a final text before the changes can come into force.
