CBAM Reporting
Accurate Carbon Border Adjustment Mechanism compliance with zero
hassle and zero delay for businesses exporting to the European Union.
What is CBAM?
The Carbon Border Adjustment Mechanism (CBAM) is a key element of the European Green Deal and the EU’s climate strategy. It aims to prevent “carbon leakage” – the situation where EU companies move carbon-intensive production abroad to countries with less stringent climate policies to avoid carbon costs.
CBAM works by requiring importers of covered goods to purchase certificates corresponding to the embedded carbon emissions in their products. The price of these certificates will be linked to the EU Emissions Trading System (ETS) carbon price, creating a level playing field between imported and EU-produced goods in terms of carbon pricing.
CBAM Overview
Full Name
Carbon Border Adjustment Mechanism
Objective
To prevent carbon leakage and ensure that the carbon price of imports is equivalent to carbon price of EU-produced goods.
Scope
Initially covers cement, iron and steel, aluminum, fertilizers, electricity, and hydrogen, with potential for expansion.
Implementation
Transitional period began January 2023, with full implementation from 2026.
CBAM Implementation Timeline
Transitional Period
- Quarterly reporting obligations begin
- No financial adjustments required
- Data collection on embedded emissions
2026 onwards
- Importers must purchase CBAM certificates
- Price linked to EU ETS carbon price
- Data collection on embedded emissions
Products Covered by CBAM
CBAM initially focuses on carbon-intensive sectors with high risk of carbon leakage
Cement
Iron & Steel
Aluminum
Fertilizers
Electricity
Hydrogen
Our CBAM Services
Comprehensive support for navigating CBAM compliance requirements
CBAM Applicability Assessment
Evaluation of whether your products fall under CBAM scope and requirements.
Emissions Calculation Methodology
Evaluation of both impacts on sustainability matters and financial implications.
Supply Chain Emissions Mapping
Structured implementation of European Sustainability Reporting Standards.
Data Management Systems
Implementation of systems for collecting, verifying, and managing CBAM-related emissions data.
CBAM Report Preparation
Creation of compliant quarterly and annual CBAM reports.
Strategic CBAM Planning
Development of strategies to minimize CBAM impacts and optimize compliance costs.
Benefits of Proactive CBAM Preparation
- Maintained EU market access without disruption
- Cost optimization through accurate emissions calculation
- Enhanced supply chain transparency and management
- Competitive advantage in the European market
- Proactive compliance with evolving carbon regulations
- Strategic positioning for the low-carbon transition