Frequently asked questions

CBAM is the EU's charge on the carbon emissions embedded in certain imported goods, so that imports pay a carbon price similar to EU factories under the EU ETS. It covers iron and steel, aluminium, cement, fertilisers, electricity and hydrogen.

The EU importer pays, as an authorised CBAM declarant that buys and surrenders CBAM certificates. The Indian exporter does not buy certificates, but it supplies the emissions data and may face price pressure if its emissions are high or unverified.

The financial obligation applies to goods imported from 1 January 2026, but certificates can only be bought from 1 February 2027. The first annual declaration and surrender, for 2026 imports, are due by 30 September 2027.

Not necessarily, because the 50-tonne threshold is counted per EU importer across all its suppliers, not per exporter. If your buyer imports more than 50 tonnes of CBAM goods in a year, CBAM applies to its imports, including yours.

Default values are standard emission figures set by the Commission by country and product, used when verified actual data is not available. From 2026 they carry a mark-up of 10%, rising to 20% in 2027 and 30% from 2028, so they usually lead to more certificates than verified actual data.

Only if the product's CN code is listed in Annex I of the CBAM Regulation, which today covers the six sectors only. Some steel and aluminium articles, such as screws and bolts, are covered, and a December 2025 proposal would add about 180 more downstream products, which is not yet law.

The CBAM Regulation allows a deduction for a carbon price effectively paid in the country of production, if it is not rebated or compensated. The Commission plans to set the evidence rules in an implementing act in 2026, so whether any Indian scheme qualifies is not yet settled.

Start by confirming your CN codes with your EU buyer and recording fuel, electricity, precursors and output for each product. Then plan verification by an accredited CBAM verifier, consider registering in the CBAM registry as an operator, and keep all bills and logs as evidence.