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Carbon Border Adjustment Mechanism (CBAM)

Stay Compliant. Stay Competitive.

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What is CBAM?

The Carbon Border Adjustment Mechanism (CBAM) is the EU’s policy tool to prevent carbon leakage and promote low-carbon trade. It applies a carbon cost to certain imported goods, ensuring that foreign producers meet climate standards similar to those within the EU.
By integrating climate goals into trade, CBAM encourages global industries to improve carbon efficiency and aligns markets with Europe’s net-zero transition.

CBAM’s Impact on Trade and Emissions

Driving Greener Trade

CBAM adds a cost based on the carbon content of imports. This encourages non-EU producers to adopt cleaner technologies to stay competitive.

The mechanism incentivises low-emission production by pricing carbon into imported goods, helping reduce global emissions.

CBAM may reshape global trade routes as importers seek suppliers with lower emissions.

CBAM sends a strong signal for climate leadership, pushing other nations to adopt carbon pricing and decarbonisation strategies.

CBAM Roll-Out Timeline

Carbon Border Adjustment Mechanism (CBAM) Timeline

Key CBAM Compliance Rules

Regulatory Framework

CBAM ensures imports face the same carbon cost as EU products, reducing the risk of carbon leakage.

What It Covers

CBAM initially applies to high-emission products: steel, cement, aluminium, hydrogen, fertilisers, and electricity.

How It Works

Importers must buy CBAM certificates to match the embedded emissions of their goods, in line with EU carbon prices.

Reporting Obligations

Businesses must report emissions data for imports. Third-party verification is required to ensure accuracy.

Adjustments & Rebates

Adjustments are available for carbon prices already paid in the country of origin. Rebates may apply in certain cases.

Non-Compliance Penalties

Fines and restrictions apply for inaccurate reporting or failure to comply with CBAM rules.

Sectors Currently in Scope

CBAM covers products and precursors with high carbon footprints. Once fully in effect, it will apply to over half of emissions from sectors under the EU ETS.
Cement
Fertilizers
Electricity
Hydrogen
Iron & Steel
Aluminium

How Credibl Helps You Comply with CBAM

Credibl’s AI-powered ESG platform helps UK businesses comply with CBAM and similar frameworks through structured, evidence-backed data management. We support every step — from strategy to verification — through four modules:

Expert consulting & advisory with in-depth CBAM reporting strategy.

This involves expert consulting and advisory services, focusing on in-depth CBAM reporting strategies. It includes:
  • Readiness Assessment: Evaluate alignment with CBAM standards.
  • Gap Analysis: Compare practices against CBAM requirements.
  • Gap Resolution: Strategies to bridge compliance gaps.
  • CBAM Advisory and Training: Guidance and implementation support.

Accurately measure your product’s direct and indirect GHG emissions

This step is crucial for accurately measuring a product’s direct and indirect greenhouse gas (GHG) emissions. It includes:
  • Data Collection: Seamless, evidence-baked data collection.
  • Carbon Accounting Module: Precise emission measurements, complying with CBAM.
  • Custom Metrics: Track tailored metrics for compliance.
  • Supplier Module: Onboard suppliers with customizable assessments.

Effortlessly manage all your emission data

This pillar ensures efficient management of all emission data. It includes:
  • Data Validation: Ensure data accuracy with Variance Analysis.
  • Smart Collaboration: Supports data collection and governance workflows for each data point.
  • Document Management Module: Centralized ESG document repository.
  • Multi-Stakeholder Review: In-depth stakeholder data review.
ESG Data Collection & Validation Solutions

Simplified CBAM reporting and verification

This final step simplifies CBAM reporting and verification processes. It includes:
  • GHG Report Generation: Detailed GHG reports for CBAM certification.
  • CBAM Reporting: Quarterly goods reporting, annual declarations, emissions calculations & measure carbon footprint with LCA methods.
  • CBAM Verification: Simplify certificate management and data verification to avoid misreporting penalties.

A Complete Solution for CBAM Reporting Start managing your carbon obligations with confidence.

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