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What are CBAM Certificates? A Plain-English Guide

CBAM certificates are the financial instrument EU importers use to pay for the carbon embedded in goods they import from non-EU countries. This guide explains what they are, how they work, and what they cost.

Published April 2026·Last updated April 2026·carbonborderadjustment.co.za

CBAM Certificates: The Financial Engine of the Carbon Border Adjustment

CBAM certificates are the mechanism by which the Carbon Border Adjustment Mechanism places a carbon price on imported goods.

What a CBAM Certificate Represents

Each CBAM certificate represents one tonne of CO₂ equivalent embedded in imported goods. The price is set to match the EU ETS carbon price — ensuring that imported goods face the same carbon cost as EU-produced goods.

The Certificate Lifecycle

Purchase: EU importers purchase certificates through the EU CBAM Registry at the weekly price.

Holding: Up to one-third of holdings can be resold back to the EU Commission.

Surrender: By May 31 each year, EU importers must surrender certificates equal to the total embedded carbon of their covered imports in the previous calendar year.

Cancellation: Surrendered certificates are cancelled and cannot be reused.

What This Means for SA Exporters

SA exporters do not purchase CBAM certificates — this is the EU importer's obligation. However, SA exporters directly influence how many certificates their EU buyers need:

  • ▸Lower embedded carbon = fewer certificates = lower cost for EU buyer
  • ▸Higher embedded carbon = more certificates = higher cost for EU buyer

For a complete CBAM compliance registration pathway, visit the Digital Product Passport Registry.

Frequently Asked Questions

What is a CBAM certificate?
A CBAM certificate is a financial instrument issued by the European Commission that represents one tonne of CO₂ equivalent embedded in imported goods. EU importers must purchase certificates equal to the total embedded carbon of their imports and surrender them to the EU CBAM Registry by May 31 each year.
How much does a CBAM certificate cost?
CBAM certificate prices are set weekly based on the average EU ETS auction price from the previous week. As of early 2026, the EU ETS price is approximately EUR 60–70 per tonne of CO₂, so each CBAM certificate costs approximately EUR 60–70.
Who has to buy CBAM certificates?
EU importers (authorised CBAM declarants) must buy CBAM certificates. South African exporters do not buy CBAM certificates — this obligation falls on the EU company that imports SA goods. However, the cost affects the commercial relationship between SA exporters and their EU buyers.
When must CBAM certificates be surrendered?
EU importers must surrender CBAM certificates equal to the total embedded carbon of their covered imports by May 31 each year, covering imports from the previous calendar year. The first surrender deadline under full enforcement is May 31, 2027 (covering 2026 imports).
What happens if an EU importer does not surrender enough certificates?
If an EU importer fails to surrender sufficient CBAM certificates by the deadline, they face penalties of EUR 100 per tonne of CO₂ for the shortfall, adjusted for inflation. This is significantly higher than the certificate price itself.
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