CBAM penalties: what happens if you don't comply
Fines for missing or under-reported CBAM certificates, late declarations and incorrect data. Plus the practical difference between error and evasion.
Published 19/10/2026 · Facts checked on 2026-10-18
Answer box
CBAM penalties apply when a declarant fails to surrender enough certificates or fails to file on time. The core penalty mirrors the EU ETS structure: a fine per tonne of missing or under-reported CO₂-equivalent, with the exact amount set at EU level and applied by national competent authorities. Separate penalties apply for non-authorised importers that import in-scope goods.
Penalty categories
- Missing certificates: fine per tonne of CO₂e not covered by surrendered certificates. The declarant still has to surrender the missing certificates.
- Non-authorised import: importing CBAM-scope goods without being an authorised declarant.
- Incorrect / incomplete data: separate category; typically remediable.
- Repeat offenders: escalation at national level.
Error vs. evasion
- An honest error flagged by the declarant and corrected is treated differently from systematic under-reporting. Verifier opinions and audit trails matter for showing good faith.
- Audit trail — every number tied to its bill, meter reading or production log — is what makes “we had the wrong figure but here’s the evidence trail” a defensible position.
How to avoid penalties
- Register as declarant in good time (don’t wait until September 2027).
- Verify actuals where you claim them. Qualified verifier opinions are not enough.
- Over-collect data. Store evidence even where you use defaults.
- File on time — the 30 September deadline is hard.
- Buy certificates with a buffer; the first annual settlement needs cash to be ready.