CBAM Compliance

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.

Learn more about CBAM on the European Commission website

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

Understanding the phased implementation schedule for CBAM compliance

January 2023 - December 2025Transitional Period
  • Quarterly reporting obligations begin
  • No financial adjustments required
  • Data collection on embedded emissions
2026 onwardsFull Implementation
  • Importers must purchase CBAM certificates
  • Price linked to EU ETS carbon price
  • Full reporting and verification required

Products Covered by CBAM

CBAM initially focuses on carbon-intensive sectors with high risk of carbon leakage

Cement

Iron & Steel

Aluminum

Fertilizers

Electricity

Hydrogen

Additional sectors may be added in future phases of CBAM implementation.

Our CBAM Services

Holistic support for navigating CBAM compliance requirements

CBAM Applicability Assessment

Evaluation of whether your products fall under CBAM scope and requirements.

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Emissions Calculation Methodology

Development of methodologies for calculating embedded emissions aligned with CBAM requirements.

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Supply Chain Emissions Mapping

Comprehensive mapping of emissions throughout your supply chain for accurate CBAM reporting.

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Data Management Systems

Implementation of systems for collecting, verifying, and managing CBAM-related emissions data.

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CBAM Report Preparation

Creation of compliant quarterly and annual CBAM reports.

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Strategic CBAM Planning

Development of strategies to minimize CBAM impacts and optimize compliance costs.

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Benefits of Proactive CBAM Preparation

Strategic advantages of early and thorough CBAM compliance

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

Ready to Navigate CBAM Compliance?

Let our specialists help you prepare for CBAM compliance and optimize your approach to maintain competitiveness in the European market.

EcoVijay Global - Sustainability & Regulatory Compliance Services