CBAM is live. Your data is either verified or defaulted.
The EU Carbon Border Adjustment Mechanism entered its definitive period on 1 January 2026. From now on, embedded carbon in your exports is priced — either against your own data or against the EU's default values.
In short
CBAM is an EU regulation pricing embedded carbon in imports of cement, steel, aluminium, fertilisers, hydrogen, and electricity. Its definitive period began 1 January 2026. Importers must report verified supplier data or use EU defaults, which run 30 to 80 percent above actual output. The first declaration, covering 2026 imports, is due 30 September 2027.
What changed on 1 January 2026
CBAM's transitional period, which only required reporting, has ended. The definitive period requires EU importers to declare embedded emissions annually and, from 2027, purchase CBAM certificates to cover them. This is not a future obligation to plan around — it is the operating basis for every CBAM-covered shipment landing in the EU right now.
A 50 tonne per year threshold exempts small importers of cement, iron and steel, aluminium, and fertilisers from full CBAM obligations. Electricity and hydrogen carry no such exemption. The threshold applies per EU importer, so an Indian exporter selling to several buyers can be well inside CBAM's reach in aggregate even where any single shipment looks small.
Why default values cost you the order
When an importer cannot get verified, installation-specific emissions data from you, CBAM requires them to use default values calibrated to a conservative benchmark. For most Indian producers, those defaults sit 30 to 80 percent above actual production emissions. The importer pays certificates against the higher figure, and that cost gets built into what they are willing to pay you, or into whether they place the order with you at all.
Suppliers who can hand over verified data in the format the EU registry expects remove that penalty from the transaction. This is now a pricing lever, not a compliance formality.
CBAM DATA FLOW
Where your emissions data goes, and what its absence costs.
01
INSTALLATION
INDIAN PRODUCER
Emissions measured at installation level, per product, per CN code.
02
THE HANDOVER
VERIFIED EMISSIONS DATA
Structured to the EU CBAM communication template, per shipment.
03
RECEIVES GOODS
EU IMPORTER
Takes delivery of the goods and of the emissions data with them.
04
FILES
AUTHORISED CBAM DECLARANT
Submits the annual CBAM declaration through the EU registry.
05
THE COST
CERTIFICATES SURRENDERED
CBAM certificates bought and surrendered against declared emissions.
AT STEP 02 THE CHAIN FORKS · BAR LENGTH = LANDED CARBON COST, INDEXED TO ACTUAL = 100
Certificates are surrendered against your measured emissions. The buyer pays for what you actually emit.
Defaults run 30–80% above actual emissions for an efficient Indian producer. The importer pays certificates on the higher figure and prices it into your order.
The gap is the quote. A buyer choosing between two suppliers is comparing landed cost, and unverified data is a surcharge you hand them.
- DEFINITIVE PERIOD BEGAN
- 1 JAN 2026
- CERTIFICATE SALES OPEN
- 1 FEB 2027
- FIRST ANNUAL DECLARATION
- 30 SEP 2027
- PER-IMPORTER THRESHOLD
- 50 T / YEAR
COVERED GOODS
- CEMENT
- IRON & STEEL
- ALUMINIUM
- FERTILISERS
- ELECTRICITY
- HYDROGEN
What we prepare for you
Installation-level emissions data for CBAM-covered goods, structured to the EU's CBAM communication template so your buyer can submit it directly. Mapping of your product lines against CBAM CN codes and the applicable calculation methodology for your sector — cement, steel, aluminium, fertilisers. A data collection process your plant can repeat each reporting period without starting from scratch.
We also help you understand where the 50 tonne threshold and product scope do and do not apply to your specific export mix, so you are not doing CBAM-grade work on shipments that do not require it.
Common questions
When did CBAM come into force?
CBAM's definitive period began 1 January 2026. A transitional, reporting-only phase ran from October 2023 through the end of 2025. From 2026, EU importers must declare embedded emissions annually, and from 2027 must purchase CBAM certificates to cover them.
When is the first CBAM declaration due?
The first annual CBAM declaration, covering emissions embedded in goods imported during 2026, is due 30 September 2027. CBAM certificate sales open on 1 February 2027.
Which products does CBAM cover?
CBAM covers six groups: cement, iron and steel, aluminium, fertilisers, hydrogen, and electricity, identified by specific CN tariff codes within each group.
Is there a minimum shipment size exempt from CBAM?
A 50 tonne per year threshold exempts small importers of cement, iron and steel, aluminium, and fertilisers. This exemption does not apply to electricity or hydrogen, and it is measured per EU importer, not per exporter.
What happens if I cannot provide verified emissions data to my EU buyer?
Your EU importer must use EU default values instead, which are typically 30 to 80 percent higher than actual emissions for efficient Indian producers. The importer pays for certificates against that higher figure, which raises their landed cost of your product relative to a supplier who can provide verified data.
Does Prakrti submit CBAM declarations on our behalf?
The CBAM declaration is filed by the EU importer, not the exporter. Prakrti prepares the underlying installation-level emissions data and documentation that the exporter supplies to the importer for that declaration.
Get your CBAM data ready before your buyer asks
Tell us which CBAM product group you export and to which EU markets. We will map what verified data your buyers will need from you.
Start CBAM preparation →