What is CBAM?
The Carbon Border Adjustment Mechanism (CBAM) is a crucial piece of European Union legislation that impacts businesses importing carbon-intensive goods into the EU. Designed to combat carbon leakage and encourage cleaner industrial production in non-EU countries, CBAM will impose fees on imports of certain high-carbon goods entering the EU.
EU CBAM Compliance Timeline: Key Dates You Need to Know
- May 2023 – CBAM legislation officially passed
- 1 October 2023 – 1 January 2026 – Transitional period (mandatory quarterly emissions reporting)
- 1 January 2026 – Definitive period begins (businesses must buy and surrender CBAM certificates)
Does Your Business Need to Comply with CBAM?
If your business imports carbon-heavy goods into the EU, CBAM compliance may apply. Understanding your obligations can help you navigate the process smoothly and avoid potential challenges as the regulations take effect.
Steel, iron, and aluminium
Including raw materials like iron ore and finished products like steel beams
Cement
Essential for construction and infrastructure
Fertilizers and hydrogen
Crucial for agriculture and energy sectors
Electricity
Covering cross-border electricity imports into the EU
How RLG Can Help Your Business with CBAM Compliance
Complying with CBAM can be complex, but RLG, in collaboration with our sister company Valpak, simplifies the process with CBAM Compliance Solutions. Unlike firms that only offer emissions calculations, we provide a full-service solution from data collection to CBAM submissions.
End-to-End Support
From initial assessment to final report submission.
Accurate Data Management
Minimizing the risk of errors and penalties.
Carbon Reduction Strategies:
Partnering with Valpak, we ensure sustainability and compliance.
FAQ’s – CBAM
The Carbon Border Adjustment Mechanism (CBAM) is an EU regulation designed to impose fees on carbon-intensive goods entering the European Union. Its primary goal is to prevent carbon leakage.
Businesses importing goods with high carbon emissions are subject to the CBAM regulation. The affected industries include cement, steel, aluminium, fertilisers, hydrogen, electricity, and others with similar carbon footprints. This includes both raw materials (like iron ore) and finished products (such as steel beams).
Carbon leakage occurs when companies relocate to countries with less stringent environmental regulations, causing an increase in global emissions. The CBAM is designed to address this issue by levying fees on high-carbon imports, which encourages global industries to adopt cleaner production methods.
Are you interested in our services for CBAM?
Contact us today to learn how RLG and Valpak can help your business navigate the EU Carbon Border Adjustment Mechanism and ensure full regulatory compliance.