EU Carbon Border Tax (CBAM) 2026: What importers of steel, cement, and fertiliser need to know

The EU's Carbon Border Adjustment Mechanism (CBAM) became financially binding in 2026, meaning importers of high-emission goods like steel, cement, fertiliser, and aluminium now face a carbon price at the border. The policy aims to prevent carbon leakage by making imported products pay the same carbon cost as goods produced inside the EU under its Emissions Trading System. Businesses that import these materials need to assess their supply chain exposure and start reporting emissions data or face penalties. CBAM works by requiring importers to purchase certificates priced in line with EU carbon allowances. If the producer already paid a carbon price in their home country, the cost can be deducted. This creates a direct financial incentive for non-EU manufacturers to decarbonise or risk losing market access. For Irish and European firms that rely on imported raw materials, the new tax adds a variable cost that must be factored into procurement and pricing strategies. The article by Tara Shine in The Currency walks through the practical steps companies should take now to comply and avoid unexpected liabilities.