Carbon Border Adjustment Mechanism (CBAM) Consultancy
Sustainable Trade Starts with EU CBAM Compliance
The Carbon Border Adjustment Mechanism (CBAM), introduced by the European Union (EU), ensures that imported carbon-intensive goods bear a fair carbon cost, just like those produced within the EU. This policy encourages cleaner industrial practices globally by leveling the playing field and reducing carbon leakage.
Why Was CBAM Introduced?
Many countries enforce strict regulations to reduce carbon emissions, while others have more lenient policies. This disparity leads to carbon leakage, where companies relocate production to regions with weaker climate regulations to avoid carbon costs. CBAM addresses this issue by ensuring that imports into the EU are subject to the same carbon pricing as goods produced within the EU, promoting fair competition and reducing global emissions.
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While these regulations primarily impact importers in EU countries, the ripple effect extends to suppliers, who must provide the necessary data to comply with importer requirements.
Who are Affected?
To address this risk, CBAM imposes a carbon tax on importers, calculated based on the COâ‚‚ emissions generated during the production of carbon-intensive goods. During its transitional phase (2023-2025), CBAM applies to the import of specific goods and selected precursors that have high carbon intensity and are most vulnerable to carbon leakage.
Cement
Aluminium
Fertiliser
Iron & Steel
Hydrogen
Electricity
CBAM is expected to expand to include more sectors and products over time, with plans to encompass all sectors covered under the European Union Emissions Trading System (EU ETS) by 2030.
How Will CBAM Affect Businesses?
CBAM affects businesses by imposing a carbon price on imported goods, ensuring that products entering the EU market adhere to similar carbon pricing as those produced within the EU ETS.
Transitional Phase (October 2023-December 2025)
Definitive Regime (From January 2026)
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CBAM launched on 1 October 2025, requiring importers to report quarterly on the GHG emissions (both direct and indirect) embedded in their imports, without any financial obligations.
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​The first CBAM reporting period ended on 31 January 2024.
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Starting in early 2025, CBAM declarants were able to apply for 'authorized CBAM declarant' status through the CBAM Registry.
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EU importers of CBAM-covered goods must register with national authorities, where they can purchase CBAM certificates. The certificate price is based on the weekly average auction price of EU ETS allowances, measured in €/tonne of COâ‚‚ emitted.
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​EU importers must report the emissions embedded in their imports and submit the required number of certificates annually.
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If importers can demonstrate that a carbon price was already paid during production, the equivalent amount can be deducted.
CBAM will be gradually implemented alongside the phase-out of free allocations under the EU ETS from 2026 to 2034.
CBAM Consultancy & Emission Reporting
Our CBAM Consultancy services provide comprehensive support to help businesses navigate compliance requirements and accurately report emissions under the CBAM.
CBAM Readiness Assessment
Evaluate your organization’s current standing and identify key areas for CBAM compliance, including the necessary data from the supply chain.
Carbon Footprint Calculation
Quantify direct and indirect emissions (Scope 1, 2, and 3) associated with imported goods and ensure data accuracy in compliance with the EU's CBAM requirements.
CBAM Reporting & Documentation
Prepare comprehensive CBAM reports in compliance with the EU regulatory framework, ensuring accuracy, transparency, and alignment with verification and reporting standards mandated under the CBAM mechanism.
Other Related Services
GHG Inventory & Accounting
GHG inventory and accounting is essential for accurately measuring, managing, and reporting emissions. These practices enable businesses to track their carbon footprint, ensure regulatory compliance, and implement effective sustainability strategies.
ESG Reporting
EES's ESG Reporting Service is designed to streamline your reporting process, particularly for first-time reporters. We align with recognized local and global frameworks and standards to ensure comprehensive, accurate, and compliant reporting.
OPTENDA CO2 Monitor
OPTENDA CO2 Monitor serves as the perfect tool for GHG Accounting. From seamlessly generating your company's current CO2 balance to expertly devising a tailored GHG reduction plan, CO2 Monitor can handle it all.