Non-compliance with the EU’s Carbon Border Adjustment Mechanism (CBAM) can limit market access, disrupt buyer relationships, and lead to financial penalties. This blog explains why timely CBAM reporting is crucial for exporters in carbon-intensive sectors to stay competitive, build trust, and future-proof their EU trade.
The EU CBAM is a significant carbon pricing mechanism that is impacting businesses and traders. CBAM will most likely continue to affect the more number of sectors and industries in future than it currently covers. At present, it applies to only six carbon intensive sectors and it will cover all the sectors under the EU ETS. Hence, it is critical that the CBAM reporting is not taken lightly. In this blog, we will understand why CBAM reporting matters for your business expansion in the European Union.
CBAM reporting is not like any other climate compliances for corporate sustainability. It is a carbon pricing mechanism introduced to prevent carbon leakage and act as a gateway to future-proofing your businesses in the European Union. It matters for the businesses that have a higher volume of trade with the EU in carbon-intensive sectors and services.