The Carbon Border Adjustment Mechanism (CBAM) is an EU regulation designed to create a fair and level playing field between EU producers and non-EU suppliers. It ensures that imported goods face similar carbon-related costs as products made within the European Union.
In practice, CBAM affects companies that import specific goods into the EU. For importers, CBAM is unfortunately often a hard nut to crack. These companies must collect emissions data from suppliers, assess it against EU rules, and report it in a structured, auditable manner. This makes CBAM not just a reporting obligation but a new compliance process that directly impacts supply chains, data quality, and internal controls. A lot of companies struggle with these obligations and that's where Dubrink can help.
CBAM is complex by design - and it will only become more complex. Today, it applies to a limited number of product categories, but the scope will expand over time to include additional sectors and materials. Reporting requirements will become stricter, verification will become more important, and financial exposure will become more real.
While CBAM is currently active in the EU, similar mechanisms are already planned elsewhere. The United Kingdom is expected to introduce CBAM from 2027, and other countries, such as Turkey, are likely to follow. For internationally active companies, CBAM is therefore not a one-off EU issue, but a structural compliance challenge.
During this phase, businesses must:
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.
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.
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.
The European Union has established penalties for non-compliance with CBAM regulations, including fines, import restrictions, and other measures to address non-compliance.
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.