Post by CO2 IQ

How Carbon Prices Drive Costs for CBAM Goods: A new era of carbon pricing for emission-intensive goods is approaching in Europe. From 2026, buyers of steel, aluminium, cement and other CBAM goods will likely see carbon costs added to their purchase prices. 💡 What’s changing? 🔹 EU ETS: While buyers don’t pay carbon prices directly, domestic producers are expected to pass through costs as free allowances are phased out until 2034. 🔹 EU CBAM: Importers will face direct and rising costs via CBAM certificates to be paid for the embedded emissions in imported goods. 🔹 Non-EU carbon prices: Carbon prices paid abroad can lower CBAM charges, but are often passed on in supplier pricing. 💰 The carbon bill for EU buyers isn’t fixed. It will rise over time with the CBAM factor and depends on: ✅ The product’s carbon intensity – monitored and verified annually; ✅ The EU ETS carbon price – fluctuating with market dynamics. With carbon price volatility increasing, buyers of CBAM goods will need to manage these cost risks. Our latest blog explains how carbon pricing translates into CBAM costs – and how importers can prepare. See link in comments 👇🏾 #CBAM #CarbonPricing #Decarbonisation #EUETS #Procurement #SupplyChain #Steel