- Published on
How will the EU’s Carbon Border Adjustment Mechanism impact you?
- Authors
- Name
- ESG Insights

Navigating #CBAM #EU #ESG for Global Business Key Takeaways:
- Understanding CBAM is essential for businesses importing into the EU.
- Data on embedded emissions is critical for compliance and cost control.
- Companies need to assess their supply chain's carbon footprint urgently.
Further Insights
CBAM Introduction: The EU's Carbon Border Adjustment Mechanism (CBAM) is a tax on carbon emissions associated with imported goods to align with the EU's emissions trading system. This measure is part of the EU Green Deal aiming to reduce GHG emissions by 55% by 2030.
Global Impact: CBAM affects companies worldwide, not just those in the EU. Businesses exporting goods to the EU in designated categories (like steel, aluminum, and fertilizer) need to be aware of the regulation, their products' embedded emissions, and compliance requirements.
Compliance Steps: Businesses must identify if their products fall under CBAM, accurately calculate the embedded emissions, and determine who will handle compliance—key to managing any potential costs effectively.
Closing Thoughts: How will the evolving global landscape on carbon emissions and regulations like CBAM shape the way multinational companies strategize their operations and supply chain management? As the CBAM list is expected to extend, now is the time for proactive adaptation and innovation in sustainability practices.