EU Carbon Border Rules Put Canadian Exporters on Notice: What CBAM Covers and Who Files

The EU Carbon Border Adjustment Mechanism, or CBAM, has applied to selected imports of cement, iron and steel, aluminium, fertilisers, electricity and hydrogen since 1 January 2026. Canadian exporters need to know that CETA tariff preferences do not waive CBAM reporting or certificate obligations. The EU importer is the formal declarant, but Canadian suppliers may need to supply emissions data and prove any carbon price already paid in production. CBAM now covers goods above a 50-tonne annual threshold for the four solid-material sectors, with electricity and hydrogen subject to authorisation regardless of volume. The first compliance cycle covers goods made and shipped in 2026, with the first annual declaration and certificate surrender due by 30 September 2027. A proposed expansion to roughly 200 downstream steel and aluminium intensive products is still under negotiation, so product codes and final law will determine future coverage. Canadian suppliers should map each product to CBAM customs codes, confirm who files in the EU, and start monitoring installation-level emissions if they want to use actual verified values instead of Commission defaults. The same classification and data logic applies to any non-EU producer selling eligible goods into the EU, including Kenyan exporters.