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For general information only. Not legal or tax advice. Content is grounded in primary law and official CBAM guidance; legal content is verified by a person.
Lakshmikumaran and Sridharan attorneysNavigating CBAM

an LKS Knowledge Portal

Navigating the EU Carbon Border Adjustment Mechanism

A grounded reference on the EU Carbon Border Adjustment Mechanism. Every fact on this site is drawn from primary law and official guidance. Nothing is added from outside knowledge.

Start with the basicsSee the source register
6
Sectors covered
4
Free tools
12 mo
Annual cycle
2,023
Reporting since
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What you will find here

Primary law and official guidance

EU Commission, TAXUD, and national authority documents, organised by topic and sector.

Sector explainers

Iron and steel, aluminium, cement, fertilisers, hydrogen, and electricity. Coverage rules, default values, and benchmarks.

Grounded tools

Covered goods checker, default values explorer, and a Copilot that answers only from the corpus. Tool outputs are indicative.

How CBAM works

From importer to declarant, to certificate, to surrender

The CBAM mechanism in four steps

Sources

Each step is drawn from the CBAM Regulation. Citations are shown beside the step.

  1. 1

    Importer becomes a declarant

    From 2026, only an authorised CBAM declarant can import covered goods into the EU customs territory.

    Regulation (EU) 2023/956, Article 5

  2. 2

    Embedded emissions are calculated

    Direct (and where applicable indirect) emissions embedded in the goods are determined per the methodology in the Regulation and implementing rules.

    Regulation (EU) 2023/956, Annex IV

  3. 3

    CBAM certificates are bought

    Declarants purchase certificates at a price tracking the weekly average EU ETS auction price.

    Regulation (EU) 2023/956, Articles 20 and 21

  4. 4

    Certificates are surrendered

    By 31 May each year, declarants surrender certificates corresponding to declared embedded emissions for the previous calendar year.

    Regulation (EU) 2023/956, Article 22

Sectors in scope

Six sectors, one mechanism

All sectors →

CBAM applies to goods listed in Annex I of Regulation (EU) 2023/956. Each sector page sets out coverage rules, default values, and sector-specific reporting points.

Timeline

Key dates for declarants and exporters

  1. Oct 2023 to Dec 2025

    Transitional period

    Quarterly reports on embedded emissions; no financial obligation. Default values permitted under conditions.

  2. From 1 January 2026

    Definitive regime begins

    Only authorised CBAM declarants may import covered goods. Annual declaration required.

  3. By 31 May 2027

    First annual declaration

    Declaration for calendar year 2026; certificates surrendered to cover declared embedded emissions.

  4. 2026 to 2034

    Free allocation phase-out

    EU ETS free allocation for CBAM sectors phases out on the schedule in the Regulation; CBAM obligations rise in parallel.

Dates and obligations follow Regulation (EU) 2023/956 and implementing acts. Full timeline.

CBAM tools

All tools →

Four grounded calculators and assistants for declarants and exporters. Outputs are indicative.

Freshness

What changed recently

The official corpus is reviewed weekly. Notices, clarifications, and changes are published here once they are verified against the primary source.

All updates

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How this site is produced

Content is grounded in the documents listed on the sources page. Tool outputs are indicative and not a substitute for the official CBAM registry, declaration, or professional advice. Read about this portal for how we publish and verify.

Popular pages

What is CBAM?

Plain-language overview of the mechanism.

Sectors

Iron and steel, aluminium, cement, fertilisers, hydrogen, electricity.

CN code checker

Check whether a CN code is in scope.

Embedded emissions

How emissions are calculated and reported.

Reporting obligations

Quarterly reports during the transitional period.

Ask the Copilot

Grounded answers from the corpus.