CBAM in 2025: What’s Happening and How You Can Get Ready
The Carbon Border Adjustment Mechanism is no longer just a concept – it’s already in motion.
And in 2025, it’s getting more serious.
If you export products like steel, cement, aluminium, fertilizers, electricity, or hydrogen to the EU, CBAM will impact your business. But what exactly is CBAM, and what should your company do about it?
Let’s break it down.
What’s New with CBAM in 2025?
Stricter Reporting Requirements
Financial Impact Begins
1. Reporting Requirements Are Getting Stricter
Right now, companies are required to report the carbon emissions involved in making their products. In 2025:
- You’ll need to provide more detailed emission data.
- You must start preparing for the financial impact of carbon taxes from 2026.
2. Electricity Use Might Be Included
So far, CBAM only accounts for direct emissions (from factories). But soon, it may also include indirect emissions, such as electricity used during production. This means: higher carbon footprints = higher costs-especially if you use coal-based electricity.
3. Global Pushback
- Countries like India, China, and Russia are expected to challenge CBAM at the WTO.
- Trade disputes or retaliatory tariffs on EU goods could follow.
4. The World Is Watching
CBAM is becoming a global example. The UK, Canada, and the USA are considering similar mechanisms. Even China may revise its carbon policies for exports.
🇮🇳 How Indian Businesses Can Prepare
At Enexion, we’ve supported many companies in getting CBAM-ready. Here’s what we recommend:
1. Start Measuring Emissions Properly
- Ensure you collect data for both direct and indirect emissions.
- Don’t delay-start gathering this data now to avoid a last-minute scramble.
2. Reduce Your Carbon Footprint
- Shift to renewable energy wherever possible.
- Use recycled materials (like scrap steel or aluminium) to cut emissions.
3. Stay Updated on Policy Changes
- Follow CBAM developments regularly.
4. Plan for Trade Adjustments
- Factor potential CBAM costs into your pricing strategies.
- Explore alternative markets or suppliers to reduce trade risk.
CBAM Can Drive Greener Business
CBAM isn’t just a tax-it’s a push toward cleaner, more efficient operations. Companies that act early will:
Final Words from Enexion
2025 is a turning point. CBAM is becoming real, and it will soon start affecting your bottom line.
Here’s how to stay ahead:
At Enexion Consulting Pvt. Ltd., we guide Indian companies through complex climate regulations like CBAM. Let us help you stay compliant, competitive, and future-ready.
Ready to Talk About Your CBAM Strategy?
We’re here to support you.
hello@enexion.de
www.enexion.asia
+91 84828 93325
Comments are closed