The Carbon Border Adjustment Mechanism (CBAM) is a regulatory instrument introduced by the European Union to align the carbon costs of imported goods with those produced within the EU. Its purpose is to ensure that imports reflect comparable CO₂ pricing, thereby supporting climate policy objectives and addressing imbalances in environmental standards.
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By implementing CBAM, the EU aims to mitigate the risk of carbon leakage, where production is relocated to regions with less stringent climate regulations to reduce operational costs. The mechanism contributes to the broader framework of the EU climate strategy by promoting consistent emissions accountability across global supply chains.
Since 1 January 2026, the regulation has entered its full implementation phase. It initially covers carbon-intensive sectors such as steel, aluminium, cement, fertilizers, electricity, and hydrogen. The scope may be extended to additional industries over time in line with EU climate targets.
From this date onwards, CBAM reports based on actual emissions must undergo verification by an accredited and independent verification body.
CBAM requirements apply to various stakeholders involved in international trade between third countries and the European Union.
If your organization manufactures goods outside the EU that fall under CBAM, you are required to quantify and report the associated CO₂ emissions. These emissions reports must be independently verified. Verified data enables your EU-based customers to declare actual emission values within their CBAM submissions, avoiding reliance on default values.
If your organization imports goods into the EU from CBAM-relevant sectors — including iron, steel, aluminium, cement, hydrogen, fertilizers, or electricity — you must submit an annual CBAM declaration. This requires verified emissions data from your suppliers.
The applicability of CBAM to specific products is determined by their CN (Combined Nomenclature) classification, as outlined in Annex I of Regulation (EU) 2023/956.
TÜV NORD is in the process of obtaining accreditation as a CBAM verification body. Preparatory measures are already in place to align internal procedures, methodologies, and governance structures with the requirements defined for accredited verification bodies under CBAM.
The objective is to perform verification activities in accordance with applicable standards, ensuring impartiality, traceability, and technical reliability. Once accreditation is granted, TÜV NORD Middle East will provide formal CBAM verification services for companies requiring compliant emissions data validation.
Verification of CBAM reports supports regulatory compliance and provides a reliable basis for emissions reporting within international trade.
Key aspects include:
The verification process conducted by TÜV NORD focuses on assessing whether reported emissions meet the regulatory and methodological requirements defined by CBAM.
Typical verification activities include:
These activities are carried out independently and in accordance with applicable verification standards.
Organizations subject to CBAM must prepare and submit emissions reports for imported goods on a regular basis. These obligations are derived from the EU’s “Fit for 55” framework, which aims to reduce greenhouse gas emissions across key sectors.
CBAM reports are required to:
