Carbon Border Adjustment Mechanism(CBAM)
Cross border Carbon adjustments
The European Union’s Carbon Border Adjustment Mechanism (CBAM) marks a significant shift in how carbon emissions are treated within global trade. It is not just a compliance requirement but a signal of how carbon accountability will shape future market access. For exporters in emissions-intensive sectors such as aluminium, steel, cement, hydrogen, fertilisers, and electricity, understanding and preparing for CBAM is now essential.
At SAGE, we support you in making sense of CBAM’s evolving framework, aligning with the reporting requirements, and preparing your business for future phases. We work with you to quantify embedded emissions in your products, map upstream data gaps, develop documentation and declarations, and identify practical opportunities for emission reductions. Our approach goes beyond compliance. We help you integrate CBAM readiness into your broader climate strategy, safeguard your export potential, and demonstrate proactive leadership in a carbon-constrained economy.
FAQ's
Who is affected by CBAM?
Initially, CBAM applies to exporters of high-emission goods to the EU such as aluminium, steel, fertilisers, cement, hydrogen, and electricity. More sectors are likely to follow.
What is required under CBAM?
Companies must calculate and report embedded emissions (Scopes 1, 2, and upstream Scope 3) per tonne of exported product, using approved methodologies, and submit quarterly reports.
What data is needed for CBAM?
You need site-level energy and emissions data, disaggregated by product, including raw material usage, fuel mix, electricity sourcing, and production process details.
How is CBAM different from internal GHG reporting?
CBAM requires product-specific emissions, not just plant-wide or company-wide GHG footprints. Methodologies must align with EU guidelines and be verifiable.
What happens if we are not ready?
Non-compliance could mean penalties, loss of preferred supplier status, or disrupted access to EU markets. Early readiness is a strategic advantage.
What we offer
CBAM readiness assessment and product eligibility mapping
Scope 1, 2, and upstream Scope 3 emission calculations
Emissions allocation at product level as per EU methodology
Supplier engagement tools and templates for upstream data collection
Quarterly report templates and support for EU submission
Training for sustainability and export teams
Our collaborative process:
Scoping and Gap assessment
Identify applicable product categories, map data availability, and benchmark CBAM-readiness.
Data collection and tool design
Structure operational data, energy flows, and upstream inputs in formats compatible with CBAM.
Emission calculations and Allocation
Use EU-aligned factors and formulas to assign emissions per tonne of output at product level.
Reporting preparation
Develop CBAM-compliant templates and support submission of quarterly disclosures.
Capacity building and Systemisation
Train teams, refine internal systems, and prepare for future audits or extensions of CBAM.
Outcomes you can expect:
Product-level emissions baseline
Generate verified carbon footprint data for each product, aligned with EU CBAM methodology.
Supply chain emissions visibility
Identify and map embedded emissions across key suppliers and upstream processes.
EU-ready documentation
Prepare compliant declarations, reporting formats, and audit-ready files for CBAM phases.
Carbon pricing preparedness
Understand potential financial impacts of carbon costs and explore mitigation strategies.
Strategic market positioning
Demonstrate climate responsibility to EU buyers and retain competitiveness in regulated markets.
Where are you on your Carbon Adjustment Mechanism (CBAM) journey?
If your products touch EU markets even indirectly, CBAM affects you. Whether you are just hearing about it or already preparing disclosures, we help you get ready in a way that strengthens both compliance and competitiveness.
Our approach
We bring together carbon accounting rigour, regulatory insight, and supply chain experience to make CBAM implementation practical, transparent, and future-proof. Every calculation is mapped to strategy.
Why Choose SAGE for your Carbon Border Adjustment Mechanism(CBAM)?
We have supported CBAM alignment for aluminium, engineering, and chemicals companies already exposed to EU trade. With deep experience in Scope 1–3 emissions, product footprints, and supply chain engagement, we translate regulation into readiness.
