Compliance & Reporting

Carbon Border Adjustment Mechanism (CBAM)

What is CBAM?

The Carbon Border Adjustment Mechanism (CBAM) is a policy tool introduced by the European Union and under consideration in the UK to address carbon leakage and ensure fair competition in global trade. CBAM places a carbon price on imported goods based on their embedded emissions, aligning with the EU’s and UK’s climate goals and ensuring imported products are held to the same environmental standards as domestic ones.

Industries Impacted by CBAM

CBAM is initially targeting carbon-intensive sectors, however, the scope may expand, and businesses in other industries should prepare for future inclusion. They currently include:

01

Cement

02

Iron & steel

03

Aluminium

04

Fertilisers

05

Hydrogen

06

Electricity

How can True Solutions help?

We specialise in helping businesses navigate the complexities of CBAM, ensuring compliance, minimising risks and identifying opportunities.

CBAM Readiness Assessments

Evaluate your organisation’s exposure to CBAM regulations and identify at-risk products and supply chains subject to CBAM requirements.

Carbon Footprint Analysis

Assess the embedded carbon emissions of your products and processes and provide detailed reporting aligned with CBAM standards.

Compliance Support

Guide you through CBAM registration, reporting, and carbon pricing mechanisms. Ensure alignment with EU and UK-specific requirements.

Supply Chain Optimisation

Help improve conversations in your supply chain to encourage sustainability and support you in sourcing low-carbon materials. Provide strategies to minimise carbon costs under CBAM regulations.

Training and Awareness

Educate your team on CBAM requirements, processes, and their implications for your business.

Policy Monitoring

Keep you updated on developments in EU and UK CBAM legislation and their impact on your sector.

Frequently Asked Questions

Which products are covered in EU CBAM?

Currently, CBAM applies to carbon-intensive goods in sectors at high risk of carbon leakage:

Cement, iron & steel, aluminium, fertilisers, hydrogen, and electricity – other sectors may be added later.

Is the UK introducing CBAM requirements?

Yes, the UK is aiming to implement CBAM regulations and impose a carbon price on certain imported goods from high-carbon sectors, including aluminium, cement, fertilisers, hydrogen, iron, and steel, starting on January 1, 2027.

Who must comply with CBAM?

The EU importer (declarant) is responsible. However, the supply chain of the product being imported (if it contains products that are covered) will have to calculate the actual emissions it contributes.

Want To Discuss Your Requirements?

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