CBAM Assessment: Requirements, Timeline and How to Prepare

CBAM is the EU's Carbon Border Adjustment Mechanism, designed to prevent carbon leakage by placing a carbon price on certain imports into the EU. Indian exporters to the EU must report the embedded greenhouse gas emissions in their goods — both direct and indirect emissions from production. The regulation applies to six sectors: cement, iron and steel, aluminum, fertilizers, electricity, and hydrogen. During the transitional phase (October 2023 – December 2025), reporting is mandatory but no financial adjustments apply. From 2026, importers must purchase CBAM certificates based on reported emissions.

• Indian exporters of steel, cement, aluminum, fertilizers, electricity, or hydrogen to the EU
• EU importers of Indian goods in CBAM-covered sectors (who are legally responsible for reporting)
• Indian companies in EU supply chains providing emissions data to EU customers

CBAM reporting covers:

• Direct emissions: Scope 1 emissions from production processes at the exporting facility
• Indirect emissions: Scope 2 emissions from electricity consumption used in production
• Embedded emissions: Total greenhouse gas emissions per tonne of product, expressed as CO2e
• Installation-level data: Facility-specific production and emissions data, not aggregate corporate figures
• Precursor emissions: Emissions from intermediate goods used in production (e.g., clinker for cement)

• Emissions data is often not tracked at the installation or product level
• Indian exporters may lack CBAM-specific measurement methodologies
• Data must be shared with EU importers, who bear legal reporting responsibility
• Quarterly reporting deadlines during the transitional phase
• Incorrect reporting can delay shipments, trigger penalties, or jeopardize EU contracts

• CBAM assessment template: Pre-built framework for reporting embedded emissions across CBAM-covered sectors
• Ingest once, report everywhere: Enter production and energy data once; generate CBAM reports alongside ESRS, CSRD, and GRI
• AI-assisted drafting: Auto-generate CBAM-compliant emission reports from uploaded production and utility data
• Supplier screening: Real-time due diligence to flag emissions data gaps in your supply chain
• One-click export: PDF and Excel formats for sharing with EU importers

1. Determine applicability: Confirm whether your exported products fall under CBAM-covered sectors (cement, steel, aluminum, fertilizers, electricity, hydrogen)
2. Identify reporting responsibility: Clarify whether you report directly or provide data to your EU importer
3. Collect emissions data: Gather Scope 1 and Scope 2 emissions data at the installation/product level
4. Calculate embedded emissions: Compute CO2e per tonne of product using CBAM-accepted methodologies
5. Generate and share: Use SustainableX to produce the CBAM report and share with your EU importer before quarterly deadlines