What is CBAM? EU Carbon Border Adjustment Mechanism
What is CBAM (Carbon Border Adjustment Mechanism)?
The EU’s Carbon Border Adjustment Mechanism (CBAM) is a policy instrument designed to ensure that producers in countries exporting to the European Union are subject to the same carbon cost as their competitors within the EU.
This regulation covers the steel, aluminium, cement, fertiliser, electricity and hydrogen sectors, and will come into full effect from 2026.
How Does It Affect Turkish Exporters?
Türkiye is one of the EU’s largest trading partners. Turkish companies exporting to the EU in sectors covered by CBAM will be required to purchase certificates (CBAM certificates) documenting the carbon content of their products.
Obligations
- Reporting direct and indirect emissions from the production process
- Undergoing third-party verification
- Submitting an annual CBAM declaration
- Purchasing and surrendering CBAM certificates
Preparation Steps
Steps to take for CBAM compliance:
- Build a carbon inventory: Calculate the Scope 1 and Scope 2 emissions of your production facilities.
- Set up a data infrastructure: Use software that lets you collect emission data systematically.
- Start the verification process: Work with an accredited verification body.
- Prepare an emission reduction plan: Implement emission reduction projects to stay competitive in the long term.
CBAM Compliance with CeeOGreen
The CeeOGreen platform simplifies your CBAM reporting processes by offering an emission calculation infrastructure compliant with the GHG Protocol and ISO 14064 standards. Visit our contact page to request a demo.