This EU Regulation sets out rules for the application, assessment, reassessment and administration of authorised EU Carbon Border Adjustment Mechanism declarants (CBAM declarants).

This supports the introduction of the EU Carbon Border Adjustment Mechanism (EU CBAM). The EU CBAM is currently in the transitional phase, with the full regime operating from 2026.

Regulation (EU) 2025/486 sets out rules for the application, assessment, reassessment and administration of authorised EU Carbon Border Adjustment Mechanism (CBAM) declarants (CBAM declarants).

Regulation (EU) 2025/486 supports the CBAM Regulation (EU) 2023/956, which requires CBAM declarants to submit annual declarations from 2027. These declarations will confirm the quantity of obligated goods imported, total embedded emissions, the number of CBAM certificates surrendered and copies of verification reports.

The transitional phase of the CBAM ends on 31 December 2025. The full CBAM regime operates from 2026.

This legislation applies across the EU.

What has changed?

CBAM declarants may be importers or indirect customs representatives that are authorised to fulfil this role by the respective national authority.

• Chapter 1 sets out application rules for CBAM declarants, including how these will be assessed and the appeals process. Specific rules affect importers of electricity. CBAM declarants must demonstrate financial and operational capacity.
• Chapter 2 concerns guarantees, which are required where applicants were not established within the two financial years preceding the year of the application. Guarantees must be registered with the CBAM registry.
• Chapter 3 concerns the CBAM declarant authorisation process. Authorised CBAM declarants will be identified as ‘active’ in the CBAM registry. Reassessment rules for CBAM declarants are also set out.
• Chapter 4 sets out the process and powers to revoke the status of authorised CBAM declarants. This includes arrangements where revocation is requested by the CBAM declarant.
• Chapter 5 applies data protection rules for CBAM declarants and the CBAM registry.

Background

The CBAM aims to address carbon leakage risks. This will be delivered by adjusting the pricing for imports of goods subject to the EU ETS to account for carbon cost differences. Sectors affected will include electrical energy, cement, fertilisers, iron and steel and associated articles, aluminium and certain ferro-alloys.

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