What is CBAM?
The Carbon Border Adjustment Mechanism (CBAM) is a European regulation introduced by the European Commission in 2023 to complement the EU Emissions Trading System (EU ETS). The purpose of CBAM is to prevent carbon leakage, where companies move production to countries with less strict climate regulations. The regulation therefore applies to companies importing steel/iron, cement, fertilizer, aluminum, hydrogen and electricity.
With CBAM, the EU aims to ensure that imported products carry the same CO₂ emissions linked financial costs as products manufactured within the EU.
The implementation is phased:
- 2023 – 2025: Transitional period
Companies must report embedded emissions on a quarterly basis. - From 2026: Full implementation
Companies must report embedded emissions on a yearly basis and surrender CBAM allowances to compensate for emissions from imported goods.
CBAM and can be complex for many companies. In addition, emissions data in CBAM declarations must be verified by independent third parties.
CBAM obligations for importers
Importers or indirect customs representatives must register as an authorized CBAM declarant before importing CBAM goods into the EU.
For each calendar year, companies must:
- Calculate the embedded emissions of imported goods according to the prescribed methodology.
- Report these emissions through a CBAM declaration.
- Submit the declaration no later than 30 September of the following year.
If a carbon price has already been paid in the country of origin (for example through a carbon tax or ETS), this can be taken into account in the CBAM calculation, reducing the number of CBAM certificates required.
All data will be recorded in the CBAM registry. This platform will be used to:
- Report emissions data
- Purchase CBAM certificates
- Surrender certificates
- Resell excess certificates to the authorities
Incentives for suppliers
Companies producing CBAM-covered goods that are imported into the EU have a strong incentive to provide verified emissions data. Under CBAM, default emission values are typically set higher than the actual emissions levels of many suppliers. As a result, importers relying on default values may need to purchase more CBAM certificates than required.
Although suppliers are not legally required to have their emissions verified, doing so allows their EU clients to report lower embedded emissions and reduce their CBAM costs. Providing verified emissions data can therefore improve a supplier’s competitiveness and strengthen relationships with EU customers.
How emissions are reported
Companies can report emissions in two ways:
Full reporting according to the EU methodology
Emissions are calculated according to the official European CBAM methodology.
Reporting using default reference values
When specific data is not available, companies may use default reference values.
The financial impact of CBAM depends on the CO₂ intensity of production. This is largely influenced by:
- The location(s) where goods are produced and/or transformed, e.g. the grid emission factor varies by country, and grids relying more on renewables produce goods with a lower embedded carbon intensity.
- The climate policy of that country (such as ETS or carbon tax): a carbon fee paid in the country of production can be deducted from the CBAM charge.
How Normec Verifavia supports you with CBAM compliance
CBAM introduces new obligations for emissions calculation, reporting and verification. Normec Verifavia helps organisations meet these obligations in a reliable and efficient way.
Our approach focuses on:
Compliance assurance
We review emissions data and reports to ensure your CBAM obligations are met correctly and completely.
Insight into emission sources
Our experts help identify and interpret the main emission sources within your import chain.
Clear interpretation of regulations
We support organisations in understanding and applying complex European regulations.
What does this mean in practice?
- Gain insight into the CO₂ intensity of your import chain
- Avoid errors in CBAM declarations
- Comply with European reporting obligations
- Minimise financial risks caused by incorrect emissions calculations
- Build trust with regulators and stakeholders
Costs and CBAM certificates
From 2026 onwards, companies must declare the amount of imported goods from the previous year and compensate the associated emissions by purchasing and surrendering CBAM certificates. The price of CBAM certificates is linked to the average weekly auction price of EU ETS emission allowances.
As of Q2 2026, the price is € 75,28 per ton CO₂e. The cost is expected to rise to between €100 and €150 per ton CO₂e by 2030. You can find the up-to-date CBAM price on official EU webiste.
Would you like to know more about CBAM?
Frequently asked questions about CBAM
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CBAM aims to prevent companies from relocating production to countries with less strict climate regulations and ensures a level playing field between European and imported products.
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CBAM applies to companies that import specific CO₂-intensive goods into the European Union.
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Companies must submit a CBAM declaration annually no later than 30 September of the following year.
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Yes. CBAM statements must be verified by an independent verifier.
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The price is linked to the average auction price of EU ETS allowances.
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This may depend on specific penalties imposed by your country; however, companies that fail to surrender enough CBAM certificates face a fine of €100 per tonne of unreported CO₂.
In addition, if a CBAM report is missing, incorrect or incomplete, the National Competent Authority (NCA) may start a correction procedure. The reporting party will then have the opportunity to correct errors.
Penalties may be imposed when:
- The reporting party has not submitted a CBAM report, or
- The report is incorrect or incomplete and is not corrected after being requested by the competent authority.
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CBAM applies to all companies importing over 50 tonnes of CBAM-covered goods. Imports of goods from the EEA and Switzerland (with the exception of the United Kingdom) are currently excluded from the scheme.
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CBAM declarations must be submitted once a year, by 30 September, covering the previous year's emissions, e.g. 30 September 2026 covers 2025 embedded emissions.