New guide: navigating the EU's Carbon Border Adjustment Mechanism

Why this matters now

Since January 2026, CBAM has moved from its transitional, reporting-only phase into a definitive phase, creating binding financial obligations for EU importers of steel, aluminium, cement, fertilisers, hydrogen and electricity.

For exporters supplying EU buyers, the implications are immediate. Shipments made now are building CBAM liability, even though the first formal payment is not due until September 2027.

What the guide covers

Focused on steel and aluminium exporters, the guide explains:

• How CBAM costs are calculated for covered goods.
• What verified emissions reporting requires, including data from input suppliers as well as an exporter’s own production.
• How default values apply when exporters do not have verified emissions data. These values are deliberately set high and rise through 2027 and 2028.
• How carbon prices paid in the country of origin can be deducted from CBAM liability, including payments under a domestic emissions trading system.

Better data can reduce exposure

The core message is that exporters can influence the costs their EU buyers ultimately face.

Better emissions data and engagement with domestic carbon pricing mechanisms can materially reduce CBAM exposure. Without action, exporters risk relying on default values that become increasingly costly.

How Goyder can help

CBAM is the kind of regulatory change Goyder helps clients prepare for: technical, fast-moving and carrying significant commercial consequences.

Our work on CBAM extends beyond this guide. We are hosting a client event on UK CBAM implications later this year, while the EU mechanism’s potential expansion into further sectors makes this an ongoing priority.

Read the full guide on the IISD website, or get in touch to discuss what CBAM’s definitive phase means for your supply chain.