What is CBAM?
The Carbon Border Adjustment Mechanism (Regulation EU 2023/956) is the EU's tool to put a fair price on the carbon emitted during the production of carbon-intensive goods entering the EU.
Who must comply?
Producers and exporters of: cement, iron & steel, aluminium, fertilizers, electricity, hydrogen (HS prefixes hardcoded in PreBro invoice generators).
Timeline
- 2023–2025: Transitional phase — quarterly emissions reports only
- January 2026: Definitive phase — CBAM certificates required, financial obligation begins
5 Steps to be CBAM-Ready
1. Map your products to CN/HS codes
Identify which of your SKUs fall under CBAM scope. PreBro auto-flags them at product creation.
2. Calculate embedded emissions
Use direct measurement (preferred) or default values (penalised). Track Scope 1 + Scope 2 per tonne of output.
3. Collect supplier data
Upstream emissions for precursors (e.g. steel scrap, alumina) must be traceable. PreBro's PCF module aggregates this automatically.
4. File quarterly reports
Submit to your national competent authority. PreBro generates the EU 2023/956 XML schema export.
5. Buy CBAM certificates (from 2026)
Equivalent to EU ETS price, weekly auctions. Plan cash flow accordingly.
Common pitfalls
- Using default values without trying direct measurement first
- Ignoring upstream (precursor) emissions
- Late filing — penalties are severe
How PreBro helps
- Auto-flagging of CBAM-scope products by HS code
- Product Carbon Footprint (PCF) calculator with GHG Protocol methodology
- Quarterly XML report generation in EU 2023/956 schema
- CBAM-ready badges on supplier profiles to win EU buyers