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Carbon Border Adjustment Mechanism (CBAM) service

Providing professional, compliant, and efficient CBAM reporting services to help you easily navigate trade barriers

What is CBAM

CBAM (Carbon Border Adjustment Mechanism), commonly known as "carbon border tax", is a new policy officially implemented in October 2023. The European Union imposes taxes on the carbon emissions of certain imported goods.

Currently, CBAM covers a range of products, including cement, aluminum, fertilizers, iron and steel, chemicals (hydrogen), and electricity. The specific determination of whether a product exported to the EU falls under CBAM can be based on the CN code list published by the European Union.

CBAM coverage industry picture

CBAM requirements

Transitional period -1 October 2023 to 31 December 2025

Reporting requirements:
Within one month after the end of each quarter, submit a quarterly CBAM report (Note: From July 2024 onwards, it is not permissible to use default values for estimating carbon emissions).

Tax payment requirements:
No CBAM taxes need to be paid. However, failure to declare on time or incomplete reporting may result in penalties ranging from 10 to 50 €/tonne of carbon emissions.

Definitive period - starting on 1 January 2026

Reporting requirements:
Before May 31 of each year, submit the CBAM report for the previous calendar year (Verified and accompanied by a verification report from the verification body).

Tax payment requirements:
CBAM taxes must be paid, calculated as follows.

How CBAM taxes are calculated

The calculation of CBAM taxes typically involves multiplying the tax rate by the total carbon emissions of the product. For detailed information on tax rates and carbon emissions calculations, please refer to the diagram on the right and the accompanying notes.

CBAM tax calculation with formula picture

Challenges you may face

  • Difficult reporting

    Numerous forms in English, complex carbon calculations, and challenging professional terminology.

  • High costs

    Gathering extensive data requires significant time and labor costs.

  • Data gaps

    Missing activity level data and difficulty in determining activity factors.

  • Risk

    Reporting inaccurately can lead to additional tax burdens as it directly relates to future CBAM tax payments.

What we provide

Supply Chain Management Platform: Assisting with internal data collection and upstream data communication

Establishing a carbon emission database to effectively mitigate risks arising from the lack of data (such as high CBAM taxes due to using only estimated values in the absence of actual data).

Helping you efficiently manage carbon data within the enterprise, bridging the gap in supply chain carbon data and overcoming trade barriers.

Supplier Management System (CarbonNewture's digital management platform)

Carbon data compliance verification: Responding to national policies and facilitating international recognition

Carbon Footprint of Product (CFP) serves as a bridge for communicating carbon data domestically and internationally. CFP data can essentially cover CBAM carbon data and also serves as the foundational data for enterprise and supply chain emission reductions.

Assisting you in constructing the CBAM carbon database and smoothly passing CBAM report verification and audits.

Carbon data verification and certification flow chart: CFP verification and certification help CBAM products export

Our advantages

  • Cost-Effectiveness

  • Efficiency

  • Authority

Standards we follow

  • Logo of Environmental management — Life cycle assessment — Principles and framework

    Environmental management — Life cycle assessment — Principles and framework

  • Logo of Environmental management - Life cycle assessment - Requirements and guidelines

    Environmental management - Life cycle assessment - Requirements and guidelines

  • Logo of Greenhouse gases - Carbon footprint of products - Requirements and guidelines for quantification

    Greenhouse gases - Carbon footprint of products - Requirements and guidelines for quantification

  • Logo of Greenhouse Gases

    Greenhouse Gases

  • Logo of Specification for the Assessment of the Life Cycle Greenhouse Gas Emissions of Goods and Services

    Specification for the Assessment of the Life Cycle Greenhouse Gas Emissions of Goods and Services

  • Logo of Requirements and Guidelines for Quantifying the Carbon Footprint of Products in Terms of Greenhouse Gas Emissions

    Requirements and Guidelines for Quantifying the Carbon Footprint of Products in Terms of Greenhouse Gas Emissions

  • Logo of General guideline of the greenhouse gas emissions accounting and reporting for industrial enterprises

    General guideline of the greenhouse gas emissions accounting and reporting for industrial enterprises

  • Logo of Requirements of the greenhouse gas emission accounting and reporting—Part 1: Power generation enterprise

    Requirements of the greenhouse gas emission accounting and reporting—Part 1: Power generation enterprise

  • Logo of Requirements of the greenhouse gas emission accounting and reporting —Part 3: Magnesium smelting production enterprise

    Requirements of the greenhouse gas emission accounting and reporting —Part 3: Magnesium smelting production enterprise

  • Logo of Requirements of the greenhouse gas emission accounting and reporting —Part 5: Iron and steel production enterprises

    Requirements of the greenhouse gas emission accounting and reporting —Part 5: Iron and steel production enterprises

  • Logo of Requirements of the greenhouse gas emission accounting and reporting—Part 7: Flat glass enterprise

    Requirements of the greenhouse gas emission accounting and reporting—Part 7: Flat glass enterprise

  • Logo of Requirements of the greenhouse gas emission accounting and reporting—Part 8: Cement enterprise

    Requirements of the greenhouse gas emission accounting and reporting—Part 8: Cement enterprise

  • Logo of Requirements of the greenhouse gas emission accounting and reporting —Part 9: Ceramic production enterprise

    Requirements of the greenhouse gas emission accounting and reporting —Part 9: Ceramic production enterprise

  • Logo of Requirements of the greenhouse gas emissions accounting and reporting —Part 10: Chemical production enterprise

    Requirements of the greenhouse gas emissions accounting and reporting —Part 10: Chemical production enterprise

  • Logo of Requirements of the greenhouse gas emissions accounting and reporting—Part 12:Textile and garment enterprise

    Requirements of the greenhouse gas emissions accounting and reporting—Part 12:Textile and garment enterprise

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