The EU Carbon Border Adjustment Mechanism launches its definitive regime in January 2026, requiring importers of carbon-intensive goods exceeding 50 metric tons to obtain authorized declarant status & purchase certificates. Certificate prices follow EU Emissions Trading System allowance valuations, calculated quarterly in 2026 & weekly from 2027. Importers must submit annual declarations detailing embedded emissions & surrender corresponding certificates. The mechanism covers cement, iron & steel, aluminum, fertilizers, electricity, & hydrogen. Carbon prices paid in origin countries may be deducted. The transitional phase from 2023-2025 required reporting without financial obligations, enabling compliance preparation.