What is CBAM?

The Carbon Border Adjustment Mechanism (CBAM) represents a groundbreaking climate policy introduced by the European Union to combat carbon leakage and promote global climate action. This comprehensive guide explains everything businesses need to know about CBAM compliance, reporting requirements, and implementation timelines.

Understanding CBAM

CBAM serves as the EU's innovative response to the challenge of carbon leakage – where companies move production to countries with less stringent climate policies. By requiring importers to purchase carbon certificates corresponding to the carbon price that would have been paid had the goods been produced under the EU's carbon pricing rules, CBAM ensures a level playing field while supporting global climate goals.

The mechanism extends the EU's existing carbon pricing policies to imports, ensuring that the ambitious climate action being taken by EU industries is not undermined by less climate-conscious production in non-EU countries.


Who is impacted by CBAM?

EU Importers

  • Companies importing CBAM goods into the EU market
  • Responsible for reporting emissions data and purchasing CBAM certificates
  • Must establish systems for tracking and verifying embedded emissions

Suppliers & Distributors

  • Companies exporting CBAM-covered goods to the EU
  • Required to provide detailed emissions data for their products
  • Must implement emissions monitoring and reporting systems

Customs Representatives and Verification Bodies

  • Support importers with CBAM compliance
  • Verify emissions calculations and documentation
  • Submit verified reports to EU authorities

CBAM Timeline & Requirements

Transitional Period (2023-2025)

During this phase, businesses must:

Full Implementation (2026 onwards)

Starting in 2026, importers will need to:


From the first of February 2027, companies will have to buy the certificates for the year 2026. The certificate price will be based on the average cost of 2026. It is essential that importers take this uncertainty into account.


Frequently asked questions

Which products are covered by CBAM?

CBAM initially covers imports of cement, iron and steel, aluminium, fertilizers, electricity, and hydrogen. The scope may expand to include additional sectors in the future. You can identify goods subject to CBAM in our CBAM code identifier.

How do I calculate embedded emissions?

Emissions calculations must follow EU-approved methodologies, considering both direct and indirect emissions from production processes. Dubrink's platform automates these calculations according to EU standards.

What are the penalties for non-compliance?

The European Union has established penalties for non-compliance with CBAM regulations, including fines, import restrictions, and other measures to address non-compliance.

When do I need to purchase CBAM certificates?

Under the Carbon Border Adjustment Mechanism (CBAM), importers must purchase CBAM certificates to cover the embedded emissions of their imported goods. Starting from February 1, 2027, importers will be required to purchase CBAM certificates for emissions generated in the year 2026.