The European Commission has recently announced that the price of Carbon Border Adjustment Mechanism (CBAM) certificates in the EU for the first quarter of 2026 is set at €75.36 per tonne of carbon dioxide equivalent. This price will serve as the basis for carbon costs applicable to relevant goods imported into the EU in Q1 2026. The price is calculated based on the average auction price of EU Emissions Trading System (EU ETS) allowances at the European Energy Exchange from January to March 2026, ensuring that imported carbon-intensive goods bear similar carbon costs to EU domestic products. Importers will be required to purchase CBAM certificates starting in February 2027 to offset the embedded emissions of goods imported in 2026, aligning their carbon costs with those of EU-based enterprises.

Affected by proposals from some member states to weaken EU carbon market rules in order to enhance industrial competitiveness, EU carbon allowance prices plummeted by nearly €30 per tonne in the first quarter. According to S&P Global Platts data, the average allowance price stood at €77.638 per tonne in Q1 2026, down from the fourth quarter of 2025. The December 2026 contract price was €72.12 per tonne as of April 2, with CBAM prices directly linked to carbon allowance prices.

CBAM officially entered into implementation in January 2026, covering imported goods including steel, aluminium, cement, hydrogen, fertilisers and electricity. It aims to guard against carbon leakage risks where companies relocate production to regions with laxer environmental policies. Quarterly pricing will apply only in 2026, with prices for the second, third and fourth quarters to be published on 6 July, 5 October and 4 January 2027 respectively. Starting in February 2027, certificate prices will be calculated on a weekly basis, benchmarked against the average auction price of carbon allowances.