Resources
CBAM: Frequently Asked Questions(2)
2025-06-10
CBAM Knowledge
CBAM Non-Compliance Penalties
What does “precursor” mean under CBAM?

“Precursor products” refer to input materials used during manufacturing.
Examples:
For pig iron: the precursor is sintered ore
For crude steel: the precursor is pig iron
For finished steel products: the precursor may be pig iron or crude steel

If a product only requires direct emission reporting, are indirect emissions still needed?

Yes. During the transition phase, indirect emissions, especially electricity-related emissions for steel, aluminum, and downstream products, must be reported, even if not subject to certificate pricing.

How are emissions calculated for CBAM-covered products?

Simple products: Use a ratio of attributable emissions to product output (i.e. emissions intensity)
Complex products: Calculate internal emissions, then add precursor product emissions based on their emission intensity

Where do CBAM data come from?

Companies must monitor, record, and calculate emissions based on output and energy use.
If you're a trader or intermediary, you must collect emission data from manufacturers because you cannot submit CBAM-compliant measured values without actual data.

Is there a fixed reporting timeline?

Yes. CBAM reporting is quarterly. Reports must be submitted within one month after each quarter ends, with modifications allowed within two months.
Starting from 2026, the reporting schedule is as follows:
Q1 Report: Submit by April 30, 2026; modify by May 31, 2026
Q2 Report: Submit by July 31, 2026; modify by August 31, 2026
Q3 Report: Submit by October 31, 2026; modify by November 30, 2026
Q4 Report: Submit by January 31, 2027; modify by February 28, 2027

More Resources

CBAM certificate is the only legal voucher for EU carbon cost offset, requiring report-verification-purchase-write-off process; centralized sales start Feb 2027 (priced with EU ETS), settlement by Sep 30, full repurchase by Oct 31, unused 2-year-old certificates cancelled Nov 1 (no compensation).

CBAM

The EUDR-China-EU trade report (Fern-supported, BellaTerra-written) notes compliance core is supply chain control & traceability; classifies non-core (soybean for domestic use) and core industries (wood products exported to EU), and lists 3 compliance key points.

EUDR

Practical guide for enterprise carbon footprint quantification data, defining 6 core categories, regulating primary/secondary data use, offering 5-step collection framework & quality principles, adapting to CBAM, carbon labeling and ISO 14067, enabling efficient carbon data compliance.

Carbon Footprint

The final EU CBAM transition period reporting window is closing, the last drill before "taxation and compliance" phase; transition needs quarterly reports without payment, full phase requires carbon tariffs with reduced free allowances, dual responsibilities, mandatory verification, stricter penalties; enterprises confirm 6 products, strengthen data traceability, cooperate with EU importers.

CBAM

The core of EUDR compliance is establishing a low-cost and confidential evidence system, following the data minimization principle. It requires providing necessary data around three core issues, clarifying data boundaries and transmission norms, and avoiding compliance and confidentiality misunderstandings.

CBAM