𝐂𝐚𝐫𝐛𝐨𝐧 𝐁𝐨𝐫𝐝𝐞𝐫 𝐀𝐝𝐣𝐮𝐬𝐭𝐦𝐞𝐧𝐭 𝐌𝐞𝐜𝐡𝐚𝐧𝐢𝐬𝐦 (𝐂𝐁𝐀𝐌) enters its Definitive Period

𝐓𝐡𝐞 𝐜𝐨𝐮𝐧𝐭𝐝𝐨𝐰𝐧 𝐢𝐬 𝐨𝐯𝐞𝐫. 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐨𝐛𝐥𝐢𝐠𝐚𝐭𝐢𝐨𝐧𝐬 𝐟𝐨𝐫 𝐂𝐁𝐀𝐌 𝐛𝐞𝐠𝐢𝐧 𝐢𝐧 𝟓 𝐝𝐚𝐲𝐬. 𝐈𝐬 𝐲𝐨𝐮𝐫 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐫𝐞𝐚𝐝𝐲 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐟𝐮𝐥𝐥 𝐢𝐦𝐩𝐚𝐜𝐭?

On 𝐉𝐚𝐧𝐮𝐚𝐫𝐲 𝟏, 𝟐𝟎𝟐𝟔, next week, the 𝐄𝐔'𝐬 𝐂𝐚𝐫𝐛𝐨𝐧 𝐁𝐨𝐫𝐝𝐞𝐫 𝐀𝐝𝐣𝐮𝐬𝐭𝐦𝐞𝐧𝐭 𝐌𝐞𝐜𝐡𝐚𝐧𝐢𝐬𝐦 (𝐂𝐁𝐀𝐌) enters its Definitive Period.

For the last two years, we have been in a "reporting-only" phase. Yet, even without financial penalties, in 𝐅𝐘𝟐𝟎𝟐𝟓, India's steel and aluminium exports to the EU dropped by 𝟐𝟒.𝟒%, 𝐟𝐚𝐥𝐥𝐢𝐧𝐠 𝐟𝐫𝐨𝐦 $𝟕.𝟕𝟏 𝐛𝐢𝐥𝐥𝐢𝐨𝐧 𝐭𝐨 $𝟓.𝟖𝟐 𝐛𝐢𝐥𝐥𝐢𝐨𝐧.

If the reporting phase alone caused a $𝟏.𝟖𝟗 𝐛𝐢𝐥𝐥𝐢𝐨𝐧 impact, the financial phase starting 𝐉𝐚𝐧𝐮𝐚𝐫𝐲 𝟏, 𝟐𝟎𝟐𝟔, demands immediate action. Here is the reality of your future costs:

Here is what happens on January 1st:

𝟏. 𝐑𝐞𝐩𝐨𝐫𝐭𝐢𝐧𝐠 𝐁𝐞𝐜𝐨𝐦𝐞𝐬 𝐏𝐚𝐲𝐢𝐧𝐠

EU importers must now purchase and surrender "CBAM certificates" to cover the embedded emissions of your goods. This is no longer just paperwork; it is a direct carbon tax calculated by this specific formula : (𝑇𝑜𝑡𝑎𝑙 𝐸𝑚𝑏𝑒𝑑𝑑𝑒𝑑 𝐸𝑚𝑖𝑠𝑠𝑖𝑜𝑛𝑠 - 𝐹𝑟𝑒𝑒 𝐴𝑙𝑙𝑜𝑤𝑎𝑛𝑐𝑒𝑠) 𝑥 𝐶𝐵𝐴𝑀 𝐶𝑒𝑟𝑡𝑖𝑓𝑖𝑐𝑎𝑡𝑒 𝑃𝑟𝑖𝑐𝑒

𝟐. 𝐕𝐞𝐫𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧 𝐢𝐬 𝐌𝐚𝐧𝐝𝐚𝐭𝐨𝐫𝐲

Self-declared data is no longer enough. From next week, your emissions data must be third-party verified. Without verification, your reports will be rejected, forcing the use of penalty rates.

𝟑. 𝐓𝐡𝐞 𝐒𝐞𝐜𝐭𝐨𝐫𝐬 𝐈𝐦𝐦𝐞𝐝𝐢𝐚𝐭𝐞𝐥𝐲 𝐋𝐢𝐚𝐛𝐥𝐞

If you export the following, the financial clock starts ticking now :

• Iron & Steel

• Aluminium

• Cement

• Fertilizers

• Hydrogen

• Electricity

𝐓𝐡𝐞 𝐂𝐨𝐬𝐭

The price of these certificates is directly linked to the EU ETS market, which saw prices exceed €𝟖𝟑/𝐭𝐨𝐧𝐧𝐞 𝐢𝐧 𝐥𝐚𝐭𝐞 𝟐𝟎𝟐𝟓 .

If you cannot provide actual, verified data, you will be forced to use "Default Values" provided by the EU . These are typically set higher than actual industry averages, effectively acting as a penalty tax on your exports.

The "Safe" Period is Gone The transition window has closed. The focus now shifts entirely to cost mitigation. Your ability to provide accurate, verified emissions data is the only way to reduce the tax burden on your EU buyers and keep your pricing competitive.

👉 𝐂𝐨𝐧𝐧𝐞𝐜𝐭 𝐰𝐢𝐭𝐡 C² (Csquare) 𝐭𝐨 𝐠𝐞𝐭 𝐬𝐭𝐚𝐫𝐭𝐞𝐝!

🌐 𝐜𝐬𝐪𝐮𝐚𝐫𝐞𝐜𝐚𝐫𝐛𝐨𝐧.𝐜𝐨𝐦

✉️ 𝐢𝐧𝐟𝐨@𝐜𝐬𝐪𝐮𝐚𝐫𝐞.𝐜𝐨.𝐢𝐧