ESG compliance
Put a number on your carbon border exposure
CBAM prices the emissions embedded in what you import. Model the cost, then collect the supplier data that turns an estimate into a declaration.
A placeholder until your supplier provides actual embedded emissions. Real declarations use installation-level data.
A simplified model for orientation. Actual liabilities depend on verified embedded emissions, the applicable free-allocation adjustment, and the rules in force at the time.
The model above is for orientation only and uses placeholder emission intensities. Your actual obligations depend on the goods you import, verified installation data, and the rules in force at the time. Confirm your position with your advisers.
The number has to come from the furnace, not a spreadsheet
CBAM is priced on the emissions embedded in each consignment. That figure sits inside your supplier’s installation, in a different country, often in a different language. Getting it is the work.
Ask the installation, not the trader
Embedded emissions are a property of where the good was made, so the request has to reach that far up the chain.
Default values carry a cost
Where actual data is unavailable, defaults may apply, and they rarely flatter the importer.
Evidence the carbon already paid
A price paid at origin can reduce what you surrender, but only if you can show it was paid.
From supplier data to surrendered certificates
Four steps, each of which depends on the one before it holding up to scrutiny.
Questions about CBAM
What is CBAM?
The Carbon Border Adjustment Mechanism puts a carbon price on certain goods imported into the EU, so that imports face a cost comparable to the one that EU producers pay under the EU Emissions Trading System.
Which goods are covered?
Cement, iron and steel, aluminium, fertilisers, electricity, and hydrogen, together with certain downstream products made from them.
What are embedded emissions?
The greenhouse gases released during the production of the imported good. They are the quantity CBAM is priced against, which is why the data has to come from the producing installation rather than an average.
What if a carbon price was already paid abroad?
A carbon price effectively paid in the country of production can be deducted, so the same tonne is not charged twice. Evidence of that payment is required.
Is there a UK CBAM?
The UK government has announced a UK CBAM intended to apply from 2027, covering a similar set of sectors. The design is still being finalised, so treat it as something to prepare for rather than a settled rulebook.
How does ESGen help?
ESGen collects embedded-emissions data from your suppliers, keeps it against each good and installation, and models the exposure so you can see where the cost falls before the declaration is due.
Does the calculator give my actual liability?
No. It is a simplified orientation model using placeholder intensities. Actual liabilities depend on verified installation data, the applicable adjustments, and the rules in force at the time.
Start your journey now
See how ESGen collects embedded-emissions data from the installations that actually hold it.