On January 1, 2026, the European Union fired the world's first shot: the Carbon Border Adjustment Mechanism (CBAM) was officially implemented. From then on, the cross-border trade has an additional yardstick - "carbon". Goods are no longer settled only in tons, cubic meters, or dollars, but also with the euro cost of embedded carbon dioxide per ton. Global trade rules were rewritten overnight, and the shipping industry, a major cross-border artery, was the first to reach the "carbon checkpoint".
The full implementation of CBAM
The first batch of "carbon tariffs" target the largest high-emission goods in China-EU trade, namely steel, aluminum, cement, fertilizers, electricity and hydrogen.
In a nutshell: In Europe, producers have to purchase EUA quotas to produce these goods, while importers from overseas need to buy the equivalent "carbon permits".
In October 2025, the EU also passed the "Simplified Regulation" for CBAM, setting an exemption standard of zero-tolerance for annual imports of 50 tons or less for four key commodities (steel, aluminum, fertilizers, and cement). This is not a concession but a step towards the official implementation, to facilitate the faster rollout of the mechanism.
The "green dividing line" of trade
The EU, under the guise of "preventing carbon leakage", has actually fired the first shot in the green trade war.
India has been named by multiple institutions: Once the CBAM is implemented, its GDP could be reduced by up to 0.5%; Chinese steel and aluminum exporters are directly facing a shrinking market share, and EU orders may overnight shift to "greener" competitors.
The threshold has been set at a new level - it is no longer about price or tariffs, but "carbon". Whoever controls the low-carbon supply chain will obtain the ticket to enter the next round of trade; the EU is using a set of climate rules to reshuffle the entire global market.
How much is the "carbon tariff" currently?
The amount of fees to be paid = (The implicit carbon emissions of the product - The free quota for similar products in the EU) × (The EU carbon price - The carbon price already paid by the exporting country)
According to the latest market data, the current carbon price in the European Union fluctuates between 60 and 80 euros per ton (approximately 460 to 620 yuan per ton). In contrast, the price of the national carbon market in China has recently been around 90 to 100 yuan per ton.
This means that if the product does not have a carbon price in the domestic market, or if the carbon price paid is much lower than the level in the EU, for every ton of carbon dioxide emitted, a penalty of approximately 350-500 yuan needs to be paid now.
The "frontline" of carbon borders
The CBAM is not a "fine notice", but a "new access certificate". Over the next three years, the party that completes its carbon strategy first will obtain the ticket for green trade:
1️⃣ Data standardization: Create a "carbon ledger" for each ship to make emissions measurable, verifiable and reportable.
2️⃣ Carbon price pre-management: Enter the EUA market in advance, engage in hedging, and convert fluctuating costs into fixed budgets.
3️⃣ Service Upgrade: Package CBAM accounting, reporting and verification into a one-stop "carbon service".
By turning carbon into a competitive asset, shipping companies can upgrade from "transporting goods" to "transporting carbon", and become indispensable low-carbon hubs in the new landscape of green trade.
The official launch of CBAM marks a watershed moment in global trade history. Starting from 2026, when goods enter the customs, not only a customs declaration form but also a carbon ledger will be required. The shipping industry is at the forefront of this transformation. Hanyue International will continue to monitor regulatory developments in Southeast Asia and provide clients with timely policy analysis and customs clearance solutions to help navigate the evolving trade landscape.
