CBAM vs EU ETS Explained
How CBAM relates to the EU Emissions Trading System, explained simply.
CBAM vs EU ETS Explained
CBAM is designed to complement the EU Emissions Trading System (ETS) by addressing the risk of carbon leakage on imports of covered goods. While the ETS applies to installations within the EU, CBAM addresses the embedded emissions of imported goods. Social Lab explains the relationship and what it means for you.
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.
Your deliverables
CBAM vs EU ETS Explained — questions we get
How is CBAM different from the ETS?
The ETS covers emissions from installations within the EU, while CBAM addresses embedded emissions of certain imports.
Why was CBAM created?
To address carbon leakage — the risk of production shifting to regions with weaker carbon rules.
Do they work together?
Yes. CBAM is designed to complement the EU ETS as part of the EU’s climate framework.
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