Environment and sustainability
Business calls for urgent clarity on EU’s Carbon Border Adjustment Mechanism ahead of January implementation
The permanent phase of the EU’s Carbon Border Adjustment Mechanism (CBAM) is set to begin on 1 January 2026, ending the current reporting-only period. businesses of all sizes across global value chains face continuing uncertainty as critical technical guidance remains unpublished. ICC calls for urgent clarity on the rules that will govern the definitive regime so businesses can plan effectively for 2026.
In a letter to Commissioner Wopke Hoekstra, ICC stresses that predictable, practical and unambiguous rules are essential to avoid unnecessary trade friction, support investment decisions and preserve the legitimacy of CBAM as a tool to tackle carbon leakage.
The letter highlights nine areas where urgent guidance is required, including:
- Standardised methodologies for calculating and verifying embedded emissions
- Clear rules for default values, benchmarks, and recognition of equivalent carbon pricing regimes
- Alignment with the EU ETS phase-out of free allowances
- Use of existing customs processes and trusted trader frameworks
- A workable approach for the de minimis threshold
- Proportionate treatment of SMEs and developing economies
- A transparent appeals mechanism for non-EU businesses
ICC also calls for the publication of final legislative texts and user-friendly technical guidance well ahead of 2026, alongside strengthened cooperation between the climate and trade communities as CBAM gains prominence in the United Nations Framework Convention on Climate Change (UNFCCC) process.
ICC and its global network stand ready to support the European Commission in ensuring that the final CBAM rules are effective, workable, and fair, and that businesses are equipped to navigate the transition.
