The CBAM, Carbon Border Adjustment Mechanism, represents one of the most significant changes in the European sustainability landscape. It is the new system of adjusting the price of goods at borders, based on carbon emissions, designed to ensure a level playing field between European companies subject to the EU Emissions Trading System and foreign producers operating in countries with less stringent environmental policies.

The objective is twofold: on the one hand, an attempt is made to prevent carbon leakage, i.e., the relocation of production to areas with lower environmental standards; on the other hand, the intention is expressed to promote the global reduction of greenhouse gas emissions.

As of January 1, 2026, the CBAM will become fully operational, with precise reporting and payment obligations for all companies importing certain goods from non-EU countries.

What is CBAM and how it works

CBAM is based on a carbon price adjustment mechanism applied to imports of energy- or emission-intensive goods. The importing company will have to declare the emissions embedded in the products and purchase a corresponding number of CBAM certificates, the value of which will be linked to the average price of CO₂ allowances under the EU ETS.

In this way, the cost of CO₂ emitted in the production of a good will be identical for a European and a foreign producer, wiping out the competitive advantage from less restrictive environmental standards.

During the transitional phase, which began in October 2023 and runs until December 31, 2025, companies must provide quarterly reports with data on emissions incorporated into imported products, with no obligation to pay for certificates. This period allows companies to familiarize themselves with the procedures and consolidate the information flows needed to ensure compliance.

cbam 2026

The sectors affected by the Carbon Border Adjustment Mechanism.

CBAM involves some specific areas:

  • iron and steel;
  • aluminum;
  • concrete;
  • fertilizers;
  • electricity;
  • Hydrogen.

These sectors are considered to be the most exposed to the risk of carbon leakage. However, the European Union has already planned to extend the mechanism to other products and materials, in line with the Green Deal and climate neutrality goals to 2050. For Italian manufacturing, which is highly integrated into global value chains, the CBAM represents a direct challenge: any company importing goods or semi-finished products will have to demonstrate traceability of embedded emissions, with standardized procedures and verifiable data.

The CBAM Registry: the platform for data management

One of the main tools for the implementation of this legislation is the CBAM Registry, the European digital platform that allows companies to centrally manage all information related to imports subject to the mechanism. Through the CBAM Registry, available at this page, importers will be able to:

  • Declare the quantities and types of imported goods;
  • Enter data on direct and indirect emissions associated with each product;
  • Calculate the number of CBAM certificates needed;
  • Monitor payments made.

All information will have to be accompanied by technical and documentary evidence to ensure traceability and the possibility of verification by the competent authorities.
It should be noted that a test and simulation environment has already been set up, in which non-binding submission tests can be done, available at this address. This page is also part of the move to make it easier for companies and make the transition as smooth as possible.
Access to the CBAM Registry will be mandatory for all importers from 2026 and will be the main tool for control and transparency of the entire system. Every operator will have to be registered in order to import goods subject to the mechanism.

Obligations and deadlines

Starting in 2026, only companies registered in the CBAM Registry will be able to import goods included in the scope of the regulations. Importers will be required to submit an annual CBAM declaration containing:

  • the imported quantities;
  • actual embedded emissions or expected standard values;
  • The number of certificates needed to cover these emissions.

The first official declaration must be submitted by May 31, 2027, and will cover the 2026 base year. Companies will also have to demonstrate that they have purchased and surrendered a number of CBAM certificates corresponding to their reported emissions. Any errors or omissions may result in economic penalties proportional to the severity of the violation and the value of the unreported emissions.
In addition to the reporting requirements, companies will have to keep and update supporting documentation for at least four years and ensure that all data are verifiable and consistent with the methodologies established by the European Commission.

CBAM reporting: a challenge for businesses

The main difficulty for companies concerns the management of data related to emissions embedded in products. Information must be collected from suppliers who often operate in countries with different standards and limited infrastructure. This requires both collaboration along the supply chain and a structured approach to information collection and integration.

Without digital tools, managing the amount of data required becomes extremely complex. Systems must be set up to automatically aggregate energy, production and logistics data and validate them according to unambiguous criteria. Data quality and completeness become strategic elements to avoid calculation errors and delays in reporting.

Digitization as a solution

To address the complexity of CBAM, companies are adopting digital platforms that automate the collection, processing and verification of emissions data. These tools integrate information from management systems, IoT sensors and energy databases, enabling them to generate reports that comply with European standards.

Key features include:

  • Automatic import of issue data from suppliers and logistics partners;
  • Traceability and historization of information to ensure quick and complete audits;
  • Approval workflows for internal validation of statements;
  • CBAM-ready reporting, already structured according to the templates provided by the European Commission;
  • Direct integration with the CBAM Registry for secure and timely data transmission.

By adopting these tools, it is possible to reduce error margins, increase transparency and transform regulatory compliance into an efficient and strategic management process.

From risk to competitiveness

Although CBAM is perceived by many companies as an additional administrative burden, it can be a game changer. The ability to monitor emissions along the supply chain becomes a competitive advantage, both to access European markets and to strengthen one’s reputation as a sustainable company.

The Carbon Border Adjustment Mechanism will act as a catalyst for industrial innovation and push companies toward production models with lower environmental impact and greater transparency in reporting. Companies that take action early, implementing digital systems and integrated procedures, will not only be ready to meet their 2026 regulatory obligations, but will also be able to leverage the data they collect to improve their efficiency and sustainability.

CBAM: European sustainability goes global

CBAM and the adoption of the CBAM Registry mark the beginning of a new phase in European climate policy. Companies that can address this transformation with the right method and tools will be able to ensure compliance and, at the same time, build a competitive advantage based on transparency, traceability and innovation.
Getting ready today means turning compliance into strategy, seizing the opportunity to position themselves as players in a more sustainable and responsible industry.

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