Introduction to CBAM
The Carbon Border Adjustment Mechanism (CBAM) represents one of the most significant changes to EU trade policy in decades. Starting from October 2023, the transitional period requires quarterly reporting, with full implementation beginning January 1, 2026.
What is CBAM?
CBAM is designed to put a fair price on carbon emitted during the production of carbon-intensive goods entering the EU. It ensures that the carbon price of imports is equivalent to the carbon price of domestic production.
Covered Products
Currently, CBAM covers:
- Cement
- Iron and steel
- Aluminum
- Fertilizers
- Electricity
- Hydrogen
Reporting Requirements
Quarterly Reports
During the transitional period, importers must submit quarterly CBAM reports containing:
- Quantity of goods imported
- Embedded emissions (direct and indirect)
- Carbon price paid in country of origin
Calculation Methods
- EU Default Values: Use when specific data unavailable
- Actual Emissions: Based on verified data from producers
- Alternative Methods: Approved calculation methodologies
Timeline
- Oct 2023 - Dec 2025: Transitional period (reporting only)
- Jan 2026: Full implementation (certificate purchasing required)
- 2027+: Potential scope expansion
Penalties for Non-Compliance
Failure to comply can result in:
- Fines up to €100 per ton of unreported emissions
- Trading restrictions
- Legal consequences
How Carbonable Helps
Our platform automates the entire CBAM compliance process:
- ✓ Automated quarterly report generation
- ✓ EU-approved emissions calculations
- ✓ Direct submission to EU Registry
- ✓ Certificate management for 2026
- ✓ Real-time compliance monitoring
Conclusion
CBAM compliance doesn't have to be complex. With the right tools and understanding, you can turn regulatory requirements into strategic advantages.