Posted on 17 Jul 2025
Concerns are growing among industry players over the 1 January 2026 implementation deadline for the EU’s Carbon Border Adjustment Mechanism (CBAM) as several key variables – such as official benchmarks and default values – remain unavailable, Kallanish notes.
Danish stainless steel distributor Dacapo has even gone so far as to say that it is “almost extremely unlikely” that CBAM will take effect from January at all given the benchmark values and IT infrastructure are not yet ready.
In a company internal email published on its LinkedIn page, the firm points out that importers will have to buy CO2 certificates that pay for the CBAM duty, but the digital certificates trading system is not ready, nor are the benchmark values required for importers to calculate the CBAM duty or the calculation method.
“A maximum half of Dacapo’s suppliers outside Europe can tell us their CO2 emissions. So, the exporters are not ready,” the firm notes. “In order to be allowed to keep importing steel, we need to apply to the EU Commission – to become an authorised importer. We must apply in both the Netherlands and Denmark, but the IT system to handle the application and authorisation is not ready.”
“At the same time, numerous customers are asking us for quotations for deliveries in Q1 or H1 2026. Because in many cases orders for delivery after 1. 1. 2026 need to be placed now/soon,” it continues. Given so many elements are still not in place, however, the firm believes the start date for CBAM will be postponed.
“So, when calculating offers for material arriving for Q1-26 quota, Dacapo chooses not to add anything to the prices for CBAM duty. We may regret this decision, but at least we have a transparent way of quoting prices to our customers,” it asserts.
The International Association of the Carbon Border Adjustment Mechanism (IACBAM) tells Kallanish the CBAM implementation timeline, in its current form, remains a serious concern for many of its members.
“One issue we frequently observe is that CBAM is often approached too theoretically – with models and formulas – while access to real-world data remains limited. It is critical that the European Commission considers not just the emissions side of the regulation, but also the operational and practical realities faced by importers, especially traders,” notes IACBAM president Marcel Duits.
The organisation has developed a dataset to provide estimated CBAM benchmark values for 2026, based on the most recent Emissions Trading System (ETS) benchmarks currently valid through 2025. This enables importers to apply the official CBAM cost formula with all its variables.
“These estimates are particularly useful for those planning purchases of CBAM goods in the coming months. They will of course be updated once official data becomes available,” Duits adds.
Although it is understandable that importers are concerned about CBAM, “the market is adapting,” he continues. “Various software providers are developing innovative forecasting tools, and initiatives such as IACBAM have introduced voluntary standards that companies and declarants can certify against. These frameworks help market participants demonstrate to clients and stakeholders that they are ready to deliver compliant CBAM services.”
A European Commission spokesperson did not address Kallanish’s question on whether CBAM implementation could be delayed, but did reiterate that CBAM is currently in its transitional learning phase and a more comprehensive review of the measure will be carried out later this year.
This will be accompanied by a legislative proposal extending CBAM to downstream products and introducing additional anti-circumvention measures, they add.
“The objective of the transitional period is to serve as a pilot and learning period for all stakeholders (importers, producers and authorities) and to collect useful information on embedded emissions to refine the methodology for the definitive period,” the spokesperson notes.
The Commission also proposed simplifications to the CBAM regulation in February, to provide cost-efficient compliance improvements and reduce the regulatory and administrative burden, they conclude.
Source:Kallanish
