Carbon Border Adjustment Mechanism

Steel, aluminium, cement, fertilisers, hydrogen and electricity entering the EU carry a reporting duty on embedded emissions, and from the definitive regime a financial charge. The declarant sits on the EU side, but the data can only come from the Indian installation, so the exporter that cannot supply installation-level figures is priced at default values, which are deliberately conservative and therefore more expensive.

• Calculate direct and indirect embedded emissions per installation and per production route, and keep the methodology on file.
• Supply the EU buyer with the emissions data in the Commission's communication template, not in a format of your own.
• Record any carbon price already paid in India with verifiable payment evidence; it can be deducted on the EU side.
• Arrange third-party verification of the figures; unverified data will not be accepted in the definitive regime.
• Treat this as a commercial matter, not only a compliance one: two suppliers at the same price are not at the same landed cost once default values apply.

• Regulation (EU) 2023/956 establishing a carbon border adjustment mechanismArticle node

• What CBAM requirements apply to Indian steel and cement exporters?
• Can a carbon price already paid in India be deducted under CBAM?

• Deforestation-free supply chains
• Corporate sustainability due diligence
• Ecodesign and the digital product passport
• All requirements
• Indian law against EU law

The same requirement is published for Chinese exporters in simplified Chinese: 碳边境调节机制

Sector

Steel, aluminium, cement, fertilisers

Read date

2026-08-26

Register version

in-export-v1.0.0

Address

/in/export/cbam