The EU just put a price on the carbon in your exports.
Understand your CBAM obligations, reduce compliance risks, and stay competitive in the EU market.
The EU’s Carbon Border Adjustment Mechanism (CBAM) is a carbon pricing regulation applicable to carbon-intensive goods exported to the European Union. Exporters are required to report the embedded emissions of their exports, and from 2026 onwards, importers face carbon cost obligations linked to these emissions.
Six carbon-intensive sectors are covered today
If you export products from these sectors to the EU, CBAM reporting requirements apply — and the scope keeps widening.
The EU CBAM currently covers over 700 product categories identified by 8-digit Combined Nomenclature (CN) codes. Additional sectors, including chemicals, ceramics, and textiles, are expected to be included in future phases.
Two phases - and the carbon costs have already started
- Quarterly emissions reporting mandatory
- No direct carbon tax implications
- Carbon costs become applicable
- Annual CBAM verification
- Purchase of CBAM certificates by EU importers
Our four-step CBAM reporting method
A structured method that turns your production data into an audit-ready CBAM report aligned with EU methodologies.
- 01Process Mapping
Understanding production processes, machinery details, products, and raw materials.
- 02Emission Data Collection
Assessment of fuel, electricity, and precursor-level emissions.
- 03Emission Calculation
Calculation of direct and indirect emissions aligned with EU methodologies.
- 04CBAM Report Preparation
Preparation of CBAM reports as per the standard EU communication template and reporting-portal requirements.
Your end-to-end CBAM compliance partner
Collection and calculation of CBAM emissions data, and preparation of quarterly and annual CBAM reports in line with EU requirements.
Assessment of CBAM costs based on embedded emissions and EU carbon prices, and identification of emission reduction opportunities to minimize future carbon costs.
Preparation of documentation required for CBAM verification, and coordination and support during third-party verification and annual compliance.
Is your product covered? Check your CN code
Search the EU CBAM product list for iron & steel and aluminium sectors.
Type a CN code or product keyword to check whether it falls under EU CBAM.
List covers iron & steel and aluminium (Regulation (EU) 2023/956, Annex I). Cement, fertilizers, electricity and hydrogen are also covered — ask our expert for those.
CBAM rules and guidelines
The regulation, the implementation timeline and the EU portals - with the official documents to view or download.
CBAM reporting delivered across sectors
Get a clear read on your CBAM requirements
Your reporting obligations, carbon-cost exposure, and the fastest path to an audit-ready CBAM report - backed by hands-on experience in CBAM compliance.
Frequently Asked Questions
What is CBAM?
The EU’s Carbon Border Adjustment Mechanism (CBAM) is a carbon pricing regulation applicable to carbon-intensive goods exported to the European Union. Exporters are required to report the embedded emissions of their exports, and from 2026 onwards, importers face carbon cost obligations linked to these emissions.
Which sectors are covered under CBAM?
CBAM currently applies to six sectors — Iron & Steel, Aluminium, Cement, Fertilisers, Hydrogen, and Electricity — covering more than 700 product categories. Additional sectors such as chemicals, ceramics, and textiles may be included in the future.
Is my product covered under CBAM?
CBAM applicability is determined based on the CN code of your exported product. Use our CBAM Eligibility Checker or contact us to determine whether your products fall within the scope of the regulation.
When do CBAM carbon costs start?
CBAM carbon costs apply from 2026 under the definitive phase. EU importers are required to purchase CBAM certificates to account for the embedded emissions in imported CBAM goods.
Is there a requirement for an audit under CBAM?
Yes. Emissions reported for the 2026 reporting year must be independently verified in early 2027 by an EU-accredited verifier. The verified emissions are then used by the EU importer to submit the annual CBAM declaration and determine the number of CBAM certificates to be surrendered.
Who in India needs to prepare for CBAM?
Indian manufacturers and exporters supplying CBAM-covered products to the European Union should prepare for compliance to maintain market access and meet EU regulatory requirements.
How does Social Lab help with CBAM?
We provide end-to-end support across the CBAM compliance journey, including CBAM reporting, carbon cost assessment and optimization, and CBAM audit readiness and verification support.
CBAM is one part of your wider compliance picture
For most exporters, CBAM sits alongside India-side obligations and broader sustainability reporting. We join the dots.
