Carbon Border Adjustment Mechanism (CBAM) Services

Supporting You in Addressing the Carbon Border Adjustment Mechanism Effectively.

What Importers Need to Know and How We Support Your Compliance

The Carbon Border Adjustment Mechanism (CBAM) is a key regulation introduced by the European Union to prevent carbon leakage and ensure fair competition between EU-produced goods and imported products. CBAM aligns the carbon costs of imported goods with those produced within the EU, encouraging global decarbonization while protecting the integrity of the EU’s climate policies.

CBAM will be implemented in two phases:

Transitional Period: October 31, 2023 – December 31, 2025

Full Implementation: From January 1, 2026 onward

1. Industries and Products Covered by CBAM

In its initial phase, CBAM applies to imports from the following carbon-intensive sectors:

Cement
Iron and Steel
Aluminum
Fertilizers
Electricity
Hydrogen

These sectors were selected due to their high greenhouse gas emission intensity and their inclusion in the EU Emissions Trading Scheme (EU ETS).

Embedded Emissions Covered Under CBAM

CBAM focuses on the embedded carbon emissions associated with imported products, including:

Direct emissions

Emissions released directly during the production process, such as carbon dioxide (CO₂), nitrous oxide (N₂O), and perfluorocarbons (PFCs).

Indirect emissions

Emissions resulting from energy consumption during production, particularly electricity usage. Indirect emissions will be gradually incorporated into CBAM’s scope over time.

The European Commission has indicated that CBAM will be progressively expanded to cover all sectors regulated under the EU ETS, with the objective of full coverage by 2030.

2. How Does CBAM Work?

Authorization and Declaration Requirements

EU importers must either:

Apply to become authorized CBAM declarants, or
Appoint an indirect customs representative to act on their behalf.

Once authorized, declarants receive a CBAM account number, which is required for reporting and future certificate management.

CBAM Registry and Central Platform

CBAM Registry

A centralized system that records authorized declarants, non-EU production facilities, and operators.

CBAM Central Platform

The official platform used to purchase, surrender, and repurchase CBAM certificates once the definitive system is in place.

3. Transitional Period: What Changes Now?

The transitional period (October 31, 2023 – December 31, 2025) is designed to help businesses adapt to CBAM requirements through data collection and reporting, without immediate financial obligations.

During this phase:

Importers are not required to purchase or surrender CBAM certificates.
The focus is on accurate emissions reporting and system familiarization.

This period allows importers, manufacturers, and regulators to identify data gaps, refine calculation methods, and prepare for full enforcement in 2026.

4. Reporting Obligations During the Transitional Period

During the transitional phase, importers must submit quarterly CBAM reports that include:

The quantity of goods imported
Embedded direct and indirect emissions associated with those goods
Any carbon price paid in the country of production, where applicable
Supporting documentation and calculation methodologies

Accurate and consistent reporting during this stage is critical, as it forms the basis for future compliance and financial liability under CBAM.

5. Exemptions and Special Cases

Exempted Regions

Imports from the following regions are currently exempt from CBAM requirements:

European Economic Area (EEA) member states
Switzerland

Potentially Exempt Countries

Countries with carbon pricing mechanisms equivalent to the EU ETS, such as cap-and-trade systems or carbon taxes, may qualify for partial or full exemptions, subject to EU assessment and approval.

6. How We Support Your CBAM Compliance

Navigating CBAM requirements can be complex, particularly when dealing with carbon data collection across global supply chains. We provide practical, end-to-end CBAM support services to help you comply with confidence.

Carbon Footprint Accounting

Accurate calculation of both direct and indirect emissions in line with EU CBAM methodologies, based on verified production and energy data.

Streamlined Reporting Support

Assistance with CBAM authorization, quarterly reporting preparation, and data submission processes, reducing administrative burden and compliance risks.