Navigating CBAM: Your Bridge to EU Trade Compliance
Expert guidance for aluminium and steel exporters worldwide to the European Union.
A practical introduction to the EU Carbon Border Adjustment Mechanism (CBAM)
CBAM is the European Union’s tool to prevent carbon leakage by putting a carbon price on certain imports. It aims to ensure that the price of imports reflects their embedded greenhouse gas (GHG) emissions—creating a level playing field between EU producers (who pay under the EU Emissions Trading System) and producers in the rest of the world.
CBAM currently applies to selected carbon-intensive goods:
- Iron and steel (including some downstream products)
- Aluminium
- Cement
- Fertilisers
- Hydrogen
- Electricity
Over time, the scope may expand as the EU refines its climate policy framework.
- Transitional phase: 1 Oct 2023 – 31 Dec 2025. Importers report embedded emissions quarterly. No financial adjustment yet.
- Definitive phase: from 1 Jan 2026. Importers purchase and surrender CBAM certificates priced against the EU ETS, with free allocations phasing out.
Reports are submitted via the EU’s CBAM Registry portal; data quality requirements tighten over time.
- Map product scope: Identify HS codes to confirm whether your goods fall under CBAM coverage.
- Measure embedded emissions: Collect primary data on direct and indirect emissions per product, following EU methodologies. Where primary data is unavailable, use default values (subject to limits) during transition.
- Share data with EU importers: Provide product-level emissions data, production routes, and electricity mix so your EU buyers can report accurately.
- Prepare for verification: From the definitive phase, emissions declarations will need third‑party verification according to EU-approved standards.
- Become an authorised CBAM declarant: Register in the CBAM Registry and obtain the right to import covered goods.
- Report quarterly (transition): Submit embedded emissions reports; ensure supplier data quality and retain evidence.
- Purchase CBAM certificates (from 2026): Buy and surrender certificates to match embedded emissions, net of any recognized carbon price paid in the country of origin.
- Standardize data: Create a data template for suppliers capturing activity data, fuels, electricity, scrap, and process emissions.
- Choose a methodology: Align with the EU’s CBAM calculation rules and relevant product benchmarks where available.
- Close gaps: Where primary data is missing, improve metering and data governance; plan for verifier-ready documentation.
- Contractual clauses: Update purchase contracts and supplier codes to require timely emissions disclosures.
- Assess cost exposure: Model potential CBAM costs from 2026 under different EU ETS price scenarios.
CBAM is not only a compliance obligation—it can be a catalyst to modernize energy use, reduce emissions intensity, and strengthen market access in Europe.
About CBAM-Bridge
A research and learning initiative dedicated to demystifying the EU's Carbon Border Adjustment Mechanism for businesses worldwide.
As researchers focused on international trade policy and sustainability, we launched CBAM-Bridge to address the critical information gap facing exporters worldwide. Our goal is to translate complex regulations into actionable insights, fostering a smoother transition for businesses navigating new compliance landscapes.
CBAM-Bridge is a learning initiative designed to build trust and credibility. We provide clear, concise, and up-to-date information on CBAM, helping exporters and importers of aluminium and steel understand their obligations, mitigate risks, and seize opportunities in the evolving EU market.
Why CBAM Matters
Understanding the Carbon Border Adjustment Mechanism is vital for maintaining and growing your business with the EU.
The Carbon Border Adjustment Mechanism (CBAM) is the EU's landmark tool to put a fair price on the carbon emitted during the production of carbon-intensive goods that are entering the EU, and to encourage cleaner industrial production in non-EU countries.
The transitional period began on October 1, 2023. Exporters must submit their first quarterly report by January 31, 2024. Full financial obligations will start from 2026. Acting now is crucial to ensure compliance and avoid penalties.
Navigating CBAM requires understanding complex reporting requirements, carbon emissions calculations, and verification processes. Proactive support helps minimize trade disruptions, manage costs, and maintain your competitive edge in the EU market.
Get Involved & Stay Ahead
Whether you're an exporter, importer, or advisor, CBAM-Bridge is here to help you navigate the future of EU trade.
Let's Connect
Have questions or want to discuss how CBAM will impact your business? Fill out the form, and we'll schedule a call.
For direct inquiries, you can also reach out via email.
contact@cbam-bridge.com