EU CBAM explained for Indian exporters: what it is and how to prepare
A plain guide to the EU Carbon Border Adjustment Mechanism as of October 2026: covered goods, the 2026 definitive period, the 50-tonne threshold, default and actual values, CBAM certificates, proposed changes, and a checklist for Indian MSME exporters.
What is the CBAM timeline?
| Period | What happens |
|---|---|
| 1 October 2023 to 31 December 2025 | Transitional period: importers filed quarterly reports on embedded emissions. No payment. |
| From 1 January 2026 | Definitive period: importers above the threshold must be authorised CBAM declarants. Emissions in goods imported from this date create a financial obligation. |
| From 1 February 2027 | Sale of CBAM certificates starts on a common central platform, covering 2026 imports and later. |
| By 30 September 2027 | First annual CBAM declaration (for 2026 imports) and surrender of certificates. After that, every 30 September for the previous year. |
| From 2027 | Each quarter, declarants must hold certificates covering at least 50% of emissions embedded in goods imported since the start of the year. |
Source: European Commission CBAM Questions and Answers, updated 15 October 2026, and the Commission news item of 14 January 2026 confirming that CBAM's definitive phase started on 1 January 2026.
Sources: European Commission, Carbon Border Adjustment Mechanism (CBAM) Questions and Answers, last updated 15 October 2026; European Commission, Carbon Border Adjustment Mechanism (main page); European Commission, CBAM definitive regime; European Commission, CBAM legislation and guidance; European Commission news: Officially published: Simplifications for CBAM (20 October 2025); European Commission news: CBAM successfully entered into force on 1 January 2026 (14 January 2026); European Commission, CBAM communication and news; European Commission, Price of CBAM certificates; European Parliament press release: CBAM: Parliament adopts simplifications (10 September 2025); Regulation (EU) 2023/956 establishing a carbon border adjustment mechanism (EUR-Lex); Regulation (EU) 2025/2083 amending Regulation (EU) 2023/956 (EUR-Lex); European Parliamentary Research Service: Extension of CBAM scope to downstream goods and anti-circumvention measures (7 September 2026); Ministry of Commerce and Industry, India's Free Trade Agreements (2025-26): Key Highlights
This article was prepared with AI assistance and checked by the GreenEye team against the sources shown in each section.
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