The EU's Carbon Border Adjustment Mechanism (CBAM) is now in its transition phase, requiring importers of cement, steel, aluminium, fertilisers, electricity, and hydrogen to report embedded emissions quarterly. This KPMG overview explains the reporting rules, the shift from default values to actual supplier data, and the risk of fines for non-compliance. Starting in 2026, CBAM will move from reporting to full implementation, meaning importers must pay for the carbon content of goods at the EU border. Companies need to build data systems, verify supplier emissions, and prepare for rising costs. The article highlights the need for early governance and supplier cooperation to avoid penalties. For businesses importing into the EU, CBAM is not a future concern but a current compliance obligation. The piece is a practical summary of what to document, where the risks lie, and how professional advisors can help manage the transition.
