The European Commission will propose a one-year delay to key carbon border tax fees, according to draft legislation obtained by POLITICO.
The EU’s Carbon Border Adjustment Mechanism (CBAM), which imposes a tax on certain imports, is currently set to go into full effect in 2026. At that point, affected industries — including aluminum, cement and steel — will have to buy “CBAM certificates” to help cover CO2 emissions from imports where no carbon price has been paid.
The draft legislation would move the start date for CBAM certificate sales back to 2027. However, companies would still be required to cover relevant emissions from 2026.
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The change is needed to give companies “sufficient time to adapt,” the document says.
