According to www.bsigroup.com, the European Union’s Carbon Border Adjustment Mechanism (CBAM) enters its full implementation phase in 2026, following a transitional reporting period that began on 1 October 2023 and runs through 31 December 2025. During this transition, importers of CBAM-covered goods into the EU must submit quarterly reports detailing embedded greenhouse gas emissions — verified according to ISO 14064-1 — for six sectors: iron and steel, aluminium, cement, fertilisers, electricity, and hydrogen.
Key Transition Requirements
BSI clarifies that while no financial CBAM payments are due during the transition, strict data submission deadlines apply: reports covering Q1–Q3 2024 were due by 31 January 2025; Q4 2024 reports were due by 31 May 2025. From 2026 onward, importers will be required to purchase CBAM certificates corresponding to the carbon price difference between the EU Emissions Trading System (EU ETS) and the carbon cost already paid in the country of origin.
Verification & Standards Alignment
BSI emphasizes that emissions data must be verified by an accredited third party — such as BSI itself — against ISO 14064-1, the international standard for quantifying and reporting greenhouse gas emissions. This verification is mandatory for all CBAM declarations starting in 2026. The standard requires rigorous documentation of activity data, emission factors, and calculation methodologies across the entire production process — including upstream inputs like electricity and raw materials.
Practical Implications for Global Supply Chains
For supply chain professionals, CBAM means unprecedented pressure to map and quantify Scope 1, 2, and especially Scope 3 emissions across tier-2 and tier-3 suppliers. Unlike voluntary ESG disclosures, CBAM mandates legally enforceable, auditable data. Companies exporting covered goods to the EU must now integrate emissions tracking into procurement contracts, supplier onboarding, and digital supply chain platforms. As BSI notes:
“The transition period is not a grace period — it’s a data readiness test.” — BSI Sustainability Practice Lead
Industry context reinforces urgency: the EU has already expanded CBAM’s scope to include certain downstream products (e.g., stainless steel, aluminium alloys) via delegated acts published in late 2024. Meanwhile, similar mechanisms are advancing globally — the UK announced its own CBAM consultation in March 2024, and Canada launched a draft carbon border measure framework in June 2024. Over 70% of global steel exports to the EU originate from China, India, Turkey, and Russia — jurisdictions with no equivalent carbon pricing, heightening compliance exposure.
Source: www.bsigroup.com
Compiled from international media by the SCI.AI editorial team.
