The Carbon Border Adjustment Mechanism (CBAM) is a climate policy introduced by the European Union to prevent “carbon leakage”—a situation where companies relocate production to countries with laxer climate regulations. CBAM ensures that imported goods are subject to the same carbon costs as products manufactured within the EU, thus creating a level playing field for industries.
CBAM primarily targets carbon-intensive sectors such as iron and steel, aluminum, cement, fertilizers, hydrogen, and electricity. Importers must declare the embedded carbon emissions in their products and purchase corresponding CBAM certificates, reflecting the carbon price that EU manufacturers pay under the EU Emissions Trading System (EU ETS).
CBAM entered its transitional phase in October 2023. During this period, importers are required to report emissions data without paying any financial adjustment. From 2026 onward, full implementation will begin, and companies will be required to surrender CBAM certificates quarterly.
This mechanism requires exporters to the EU, compelling them to measure and reduce their carbon footprint. Businesses must now align their emissions reporting and reduction strategies with EU standards to remain competitive and compliant.
KBS supports exporters and manufacturers in meeting CBAM obligations through a practical, step-by-step approach:
Our services simplify CBAM compliance while building long-term emission management capacity.
KBS brings a combination of certified expertise, technical rigor, and client-focused delivery to CBAM compliance:
With KBS, you ensure smooth CBAM compliance and enhance your international sustainability credentials.
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