The price of Carbon Border Adjustment Mechanism (CBAM) certificates for the third quarter of 2026 has been set at €82.32 ($92.3), rising steeply, by €7.04 from the previous quarter, Kallanish notes.
This comes as EU carbon permit (EUA) prices increased on-quarter in Q3, peaking at above €88 in mid-September as increased coal use boosted demand for EUAs. However, they still did not reach the Q1 peak in excess of €93.
The Emissions Trading System (ETS) is being reviewed by EU lawmakers amid intense debate within the steel industry. Early decarbonisation investors want high EUA prices to ensure a business case, while other mills are asking to ease the cost pressure until conditions enabling decarbonisation are in place.
The European Parliament recently voted to maintain the invalidation of allowances in the Market Stability Reserve (MSR), but raise the threshold from 400 million to 650 million allowances. Eurofer said the phaseout of free allowances should be slower than planned, with focus also given to providing low-carbon energy, effective trade measures and lead markets for low-carbon steel.
CBAM is also coming under attack. The World Trade Organisation (WTO)’s Dispute Settlement Body (DSB) has established a panel at Russia’s second request to determine whether the EU’s CBAM and alleged ETS export subsidy are consistent with the bloc’s WTO commitments.
