CBAM
Carbon Border Adjustment Mechanism (CBAM)
The EU Carbon Border Adjustment Mechanism prices the embedded emissions of selected imported goods so they face a cost comparable to EU carbon trading. Importers report those emissions during the transitional phase and, from the definitive phase, must surrender matching certificates, meaning UK and other non-EU exporters supplying cement, steel, aluminium, fertiliser, hydrogen or electricity into the EU need reliable installation-level emissions data.
Who is in scope
EU importers of CBAM goods (initially cement, iron and steel, aluminium, fertilisers, electricity and hydrogen, with possible expansion to further product categories over time). Non-EU producers supplying those importers must provide embedded-emissions data per consignment. UK firms exporting in-scope products into the EU are indirectly in scope, even though the legal obligation sits with the EU importer.
Deadlines and timing
Transitional reporting obligations began in late 2023; definitive certificate surrender phases follow the EU’s published timetable and depend on the specific goods sector. Check the European Commission CBAM pages for current reporting windows, default value rules and calculation methodologies before each reporting quarter.
Required or expected scopes
From the blog
Related articles
- CBAM Is Live — What It Means If Your Customer Exports to the EUEU CBAM is fully operational. If your customer exports to the EU, they'll need your emissions data. Here's what to prepare.
- EUR 75.36 Per Tonne — What the First CBAM Certificate Price Means for UK SME SuppliersThe EU's first CBAM certificate price is EUR 75.36/tonne. Here's what it means for UK SMEs in manufacturing supply chains.
- UK CBAM 2027: What SME Exporters Need to KnowThe UK Carbon Border Adjustment Mechanism starts January 2027. If you export aluminium, steel, cement, or fertilisers, here's what you need to prepare.
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By activity data
Frequently asked questions
- Does CBAM use GHG Protocol scopes?
- CBAM focuses on embedded emissions in specific goods using EU-defined calculation rules, which overlap with direct and electricity-related emissions rather than a full Scope 1–3 corporate inventory. Corporate GHG inventories still help producers evidence plant-level data.
- What should UK manufacturers prepare?
- Map products that fall under CBAM codes, gather installation-level activity data and emission factors, and agree data-sharing processes with EU importers before definitive obligations bite.
- Is there a UK CBAM?
- The UK has consulted on its own carbon border approach. Until UK rules commence, EU CBAM remains the primary border mechanism affecting UK exporters into the EU.
- Which goods currently fall under CBAM?
- The initial CBAM sectors cover cement, iron and steel, aluminium, fertilisers, hydrogen and electricity, identified by specific customs codes. Coverage may expand over time, so check the current EU annexes rather than assuming a fixed, permanent list of products.
- Who is responsible for submitting CBAM reports?
- The EU importer, or an indirect customs representative acting for them, is responsible for submitting CBAM reports and, later, surrendering certificates — but they typically depend on the non-EU producer to supply accurate embedded-emissions data for each consignment.