The EU Carbon Border Adjustment Mechanism has moved from its transitional reporting phase into the definitive period, with financial obligations now live. Importers of aluminium, steel, cement, fertiliser, hydrogen, and electricity into the EU must purchase CBAM certificates reflecting the embedded emissions of their imports, adjusted for any carbon price already paid at origin.
For GCC aluminium producers and Indian steel exporters, CBAM represents a material cost that must be integrated into pricing, production planning, and decarbonisation investment decisions. The embedded emissions calculation methodology — covering direct emissions and, for some sectors, indirect emissions from electricity — requires robust GHG accounting at the installation level.
GSustain’s analysis covers the compliance timeline, certificate pricing mechanism, embedded emissions calculation requirements, and how GHG verification under ISO 14064 supports CBAM compliance for exporters across the Gulf and South Asia.