Carbon Border Adjustment Mechanism

Carbon Border Adjustment Mechanism

The EU has unveiled the Carbon Border Adjustment Mechanism (CBAM), a system of carbon pricing that will impose a fee on a carbon-intensive goods imported into the EU.

According to the CBAM regulations, importers from the EU will have to disclose the upstream emissions in some imported goods and buy carbon certificates at a price equal to what they would have paid for carbon if the imported items had been made in accordance with the EU’s Emission Trading System (ETS).

The cost of the carbon used in the manufacturing of the imported goods can be subtracted from the EU importer’s CBAM payment obligation if a non-EU producer can show that they have already paid a price for the carbon used in a third-country.

There is a chance for “carbon leakage” as the EU works to step up its efforts to combat climate change and as less strict climate restrictions continue in non-EU nations. Carbon leakage occurs when EU producers shift their carbon-intensive manufacturing facilities to nations with relaxed climate regulations or when previously made goods are replaced by equivalent imports with a high carbon footprint.

GCAS offer a range of CBAM services to help organizations meet the requirements – from GHG accounting and reporting to verification.

Support through the transitional period

  • Develop & implement an GHG accounting methodology and system as per CBAM requirements.

Training and Implementation

  • Technical training for your industry sector and products.

Gap Analysis

  • We assess current GHG emission accounting, reporting and alignment to CBAM requirements.

GHG emission Reporting & Verification

  • Reporting and Verification assistance from Accredited verifier (From 2026)

Contact us here

Carbon Border Adjustment Mechanism