Carbon Border Adjustment Mechanism (CBAM)
The EU’s Carbon Tariff on Imported Industrial Goods
The Carbon Border Adjustment Mechanism (CBAM) is the EU’s answer to carbon leakage — the risk that companies move production to countries with less stringent climate regulations.
CBAM imposes a carbon price on certain carbon-intensive goods imported into the EU, equivalent to the EU ETS carbon cost that would have been paid if the goods were produced in Europe.
Why CBAM Matters to GCC Companies?
If you export any of the regulated materials into the EU, you are already affected — even if you’re not the importer.
From now on, your EU buyers will require embedded emissions data to avoid paying the maximum CBAM charge.
You are affected if:
- You export cement, aluminum, steel, fertilizer, hydrogen, or electricity to Europe
- You are part of a global value chain that feeds EU industrial manufacturing
- You want to maintain access to EU markets without a carbon-related price penalty
CBAM turns carbon disclosure into a commercial requirement.
Companies who cannot prove their carbon profile may be priced out of the EU market.
CBAM Transitional Phase (2023–2025)
During this phase, EU importers must
If suppliers (e.g., companies from the GCC) do not provide verified emission data, EU importers must apply default values — often significantly higher.
01
Collect detailed data on the direct and indirect emissions of imported goods
02
Reduce your household’s carbon footprint by using renewable energy.
03
Begin preparations for the financial mechanism starting in 2026, where CBAM certificates will be purchased and surrendered to cover declared emissions
Our Services for CBAM Readiness
We help exporters, manufacturers, and trading companies prepare for and navigate CBAM
Embedded Emissions Calculation
LCA-based tools and methodologies to calculate product-level CO₂ footprints
CBAM Declaration Assistance
Support for preparing data submissions aligned with EU importer needs
Verification Strategy
Guidance on accepted standards and third-party verification routes
CBAM Price Advisory
Forecasts and hedging support for CBAM-linked EUA costs
Customs & Documentation Workflow
Mapping CBAM requirements into your existing logistics and export documentation flow