Dear Sir or Madam,
As you are no doubt already aware, following a two-year transition period, Regulation (EU) 2023/956 establishing a carbon border adjustment mechanism—commonly referred to as CBAM —came into force this year. Among other things, this includes the obligation to submit fee-based CBAM certificates when importing goods subject to CBAM. This also includes fastening materials made of steel, stainless steel, and aluminum, which will result in additional procurement costs for us that were not known until the end of last year.
The standard values published by the EU on December 17, 2025, for calculating the costs of CBAM certificates unfortunately mean unexpectedly high additional costs for us this year, which we must also take into account in our price calculations. In addition to country-specific standard values and production-dependent benchmarks, the volatile CO² certificate prices from the EU Emissions Trading System (EU ETS) also have an impact on CBAM costs. Furthermore, the EU has stipulated that the already high CBAM costs will increase annually by a certain percentage and will be raised to 100% by 2034.
In light of this, we unfortunately have to recalculate our costs and prices and reflect the additional costs in our sales prices with immediate effect. However, we will endeavor to keep the price adjustments as low as possible. On the procurement side, we are working hard to reduce the additional costs associated with CBAM to a minimum in the coming years, but we ask for your understanding regarding the initial price adjustment that is currently necessary.
We will keep you informed about further developments and specific effects on our business. Please do not hesitate to contact us if you have any questions.
Sincerely,
Andre Gehrmann
Head of Sales
WEWO GmbH
FOR OUR CUSTOMERS
CBAM information event
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FAQs about CBAM:
CBAM stands for Carbon Border Adjustment Mechanism – CBAM for short – from Regulation (EU) 2023/956.
CBAM began in October 2023 with a "transition phase." After numerous adjustments, the "regular phase" began on January 1, 2026.
CBAM prevents companies from relocating their production to third countries in order to avoid the strict CO² prices imposed by the EU Emissions Trading System (ETS) by applying the same CO² price to imports as to EU products. CBAM aims to strengthen climate protection and ensure fair competition.
Companies based in the EU that import more than 50 tons of CBAM goods from non-EU countries. They must register as an "authorized CBAM declarant." Importers who are not based in the EU have an indirect customs representative.
The rules apply in particular to:
- Iron and steel (and many products made from them, such as screws and nuts)
- Aluminum (and products made from it)
- cement
- fertilizer
- hydrogen
- electricity
CBAM registrants must report information on the emissions generated by the products they import to the EU on a quarterly basis. The reported values are certified by independent third parties. There is a calculation formula specified in DVO 2025/2548. However, it will not be possible to purchase certificates for the first time until 2027; until then, a fixed CBAM factor will apply. It is currently unclear how certificate prices will develop.