CBAM FAQFrequently Asked Questions

Get expert answers to the most common questions about the EU Carbon Border Adjustment Mechanism. From basics to advanced compliance topics.

Most Asked Questions

1

What is CBAM and when does it start?

Basics

The Carbon Border Adjustment Mechanism (CBAM) is an EU regulation that began its transitional phase in October 2023, requiring quarterly emissions reporting. Full implementation starts January 1, 2026, when importers must purchase CBAM certificates.

2

Which products are covered by CBAM?

Products

CBAM currently covers six sectors: cement, iron and steel, aluminum, fertilizers, electricity, and hydrogen. The scope may expand to all EU ETS sectors by 2030.

3

What are CBAM certificates and when do I need them?

Compliance

CBAM certificates represent the carbon cost of imports. Starting January 1, 2026, EU importers must purchase certificates corresponding to the embedded emissions in their imports and surrender them annually.

4

What are the penalties for non-compliance?

Penalties

Penalties can reach up to €100 per ton of unreported emissions, plus potential trading restrictions. Penalties vary by member state but are designed to ensure effective compliance.

5

How do I calculate embedded emissions?

Technical

You can use actual emissions data from producers or EU-published default values. Actual data is preferred and may become mandatory from 2026. Carbonable provides automated calculation tools.

6

Do I need Authorized CBAM Declarant status?

Authorization

From January 1, 2026, only Authorized CBAM Declarants can import CBAM-covered goods. Applications open in April 2025, and the authorization process involves financial guarantees and compliance demonstrations.

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CBAM FAQ | Complete Answers to Carbon Border Adjustment Questions | Carbonable