Asian steel mills step up CBAM compliance as carbon costs reshape EU trade flows in Commodity News 14/05/2026 Asian steelmakers are accelerating efforts to comply with the EU’s Carbon Border Adjustment Mechanism as the announcement of a clear carbon price under the regime and tightening import restrictions begin to reshape export economics, trade flows and pricing structures. Market participants said mills are prioritizing emissions reporting, third-party verification, and cost optimization to remain competitive in the EU, where carbon is increasingly factored into purchasing decisions alongside raw materials and freight. CBAM developments One of the most notable developments came on April 7, when the European Commission published its first CBAM certificate price of Eur75.36/metric tons of CO2 equivalent ($88.44/mtCO2e ) for the first quarter of 2026, establishing a key benchmark for carbon costs on imports. Under the current timeline, importers will be required to purchase CBAM certificates from February 2027 to cover emissions embedded in 2026 imports, aligning their costs with those paid by domestic producers under the EU Emissions Trading System. Li Fang, a CBAM researcher at HiQLCD, a Chinese life cycle assessment data platform, said the regulation remains widely misunderstood due to its complexity and evolving implementation details, leading to confusion in data sharing. Uncertainty surrounding verification is also a major issue, especially as some European importers are already requesting officially accredited emissions reports from manufacturers, even though the European Commission has not yet released its list of recognized accreditation agencies, he added. Meanwhile, Jing Liu, founder and lead consultant at China-based Jingzhe Environment and Climate, a CBAM research and consulting firm, said the key challenge with CBAM is no longer understanding the framework but whether the institutions responsible for verification are equipped to implement it credibly.