On 13 May 2026, the European Commission published draft rules for implementing the CBAM mechanism,defining how carbon costs paid in third countries will be recognised when calculating obligations for imports into the EU. The rules would apply retroactively from 1 January 2026..
Under the draft, importers will be able to reduce their CBAM obligations by carbon costs already paid abroad, provided those costs arise from recognised systems such as ETS, schemes, emissions taxes or other valid carbon-pricing mechanisms.
One of the key changes is a limit on the use of international carbon credits under Article 6 of the Paris Agreement to a maximum of 10% of emissions per installation; anything above that limit will not be recognised in the CBAM calculation.
The draft also defines four categories of recognised systems (emissions trading systems - ETS, emissions taxes, carbon-based fuel taxes and hybrid systems), with stricter conditions for evidence, verification and transparency.
The public consultation runs until 10 June 2026, and final rules are expected before the start of full CBAM implementation.