The European Union's Carbon Border Adjustment Mechanism (CBAM) has entered a new stage, bringing carbon emissions data into sharper focus across international aluminium trade.

Following a transitional reporting period from 2023 to 2025, the mechanism entered its definitive phase on 1 January 2026. For aluminium producers, processors and exporters supplying the European market, understanding how embedded emissions are calculated, documented and verified is becoming increasingly important.

Recent guidance from the European Commission has provided greater clarity on implementation, while the first major compliance deadline is approaching in September 2027.

From Emissions Reporting to Carbon-Related Costs

Under the definitive regime, EU importers exceeding the applicable annual threshold of 50 tonnes of covered CBAM goods are generally required to obtain authorised CBAM declarant status and meet the relevant reporting and financial obligations. Electricity and hydrogen are subject to separate threshold rules.

The mechanism links the carbon costs of covered imported goods to the EU Emissions Trading System (EU ETS) through CBAM certificates.

For imports made in 2026, certificate prices are calculated using quarterly averages of EU ETS auction prices. From 2027, prices will be calculated weekly.

The European Commission published the Q3 2026 CBAM certificate price of €82.32 per tonne of CO₂e on 5 October 2026, compared with €75.28 for Q2.

However, this reference price should not be interpreted as the final CBAM cost per tonne of imported aluminium. The actual obligation depends on the applicable embedded emissions, adjustments reflecting EU ETS free allocation and any eligible carbon price already paid in the country of origin.

Although the definitive regime began in 2026, the purchase of CBAM certificates covering 2026 imports will begin in February 2027.

For aluminium exporters outside the EU, these requirements increase the importance of understanding how production-related emissions data may affect customers' compliance obligations and purchasing decisions.

Photo from European Commission

New Guidance for the Aluminium Industry

On 14 August 2026, the European Commission published ten guidance documents to support businesses implementing CBAM during its definitive phase.

The series includes a dedicated guide for aluminium, covering production processes, value chains, emissions monitoring and the calculation of embedded emissions.

The guidance is particularly relevant to non-EU installation operators supplying products covered by CBAM, as well as EU importers and accredited verifiers.

One important distinction concerns the use of actual emissions data versus EU default values.

Under the applicable rules, importers may use default values provided by the European Commission or verified actual emissions data. Where actual values are used, the relevant emissions information must be verified under the CBAM framework.

The Commission has also published corrected default values and sector-specific benchmarks for the definitive period, making it important for companies to work with the latest applicable methodologies rather than relying solely on reporting practices from the transitional phase.

Carbon Data and Verification Across the Aluminium Supply Chain

The introduction of the definitive regime is making emissions monitoring and data traceability increasingly relevant to aluminium supply relationships.

For non-EU producers wishing to provide actual emissions data, preparation may involve establishing reliable monitoring systems, documenting production processes and maintaining the information required for independent verification.

Relevant data may include production volumes, material inputs, process-related emissions and other information specified by the applicable CBAM methodology.

Verification is also progressing towards implementation. According to the European Commission's timeline, accredited verifiers began registering in the CBAM Registry in September 2026, with the first verification reports expected to be issued from January 2027.

An important distinction remains between a product's overall carbon footprint and the emissions currently covered by CBAM. Although electricity sources can have a substantial impact on aluminium's lifecycle emissions, the current CBAM framework for aluminium primarily covers the direct emissions specified under its methodology.

For aluminium suppliers, the immediate priority is therefore to understand the emissions boundaries applicable to their products and provide accurate, traceable data where required.

The First Major Deadline: September 2027

The first annual CBAM declaration, covering imports made during 2026, must be submitted by 30 September 2027. The corresponding CBAM certificates must also be surrendered by that date.

For EU importers and their non-EU suppliers, this creates a clear timetable for preparing emissions information and completing the necessary verification procedures.

Beyond the existing requirements, the EU is also considering extending CBAM to additional aluminium- and steel-intensive downstream products. The proposals remain subject to the legislative process, making future regulatory developments another area for the industry to monitor.

What CBAM Means for the Aluminium Industry

CBAM is bringing greater attention to the relationship between material supply, production processes and emissions transparency.

For aluminium producers and processors, this creates a growing need to integrate carbon data management with existing quality control, production monitoring and supply-chain documentation.

For European buyers, reliable emissions information can support regulatory compliance and more informed sourcing decisions.

Beyond compliance, energy efficiency, process optimisation, recycling and lower-carbon production routes remain important areas for strengthening competitiveness across the aluminium value chain. Their implications for CBAM must, however, be assessed according to the applicable emissions methodology.

As international trade requirements evolve, the ability to provide reliable carbon information alongside material specifications, quality certifications and delivery capabilities is becoming an increasingly valuable part of aluminium supply-chain cooperation.

These developments highlight the importance of continued technological exchange and collaboration across the global aluminium industry.

ALUMINIUM CHINA 2027, taking place from 7–9 July 2027 at Halls E1–E7, Shanghai New International Expo Centre, will bring together aluminium producers, processors, equipment suppliers and downstream application industries to explore developments across the aluminium value chain.

Sources:

European Commission