European flag - CBAM affects EU countries importing from China

Danish Industry
CBAM China Services

The new EU regulation Carbon Border Adjustment Mechanism (CBAM) was introduced in 2023 to reduce ‘carbon leakage’. In short, the regulation mandates that companies importing a defined set of high greenhouse gas emitting goods must compensate for lower price of emissions in the country of origin. European companies importing CBAM-affected goods, such as iron, steel, and aluminium, from China must report CBAM data. We can help European companies ensure they have robust systems for collecting CBAM data in China, also ensuring that this can be used for other purposes such as CSRD reporting.

CBAM was introduced with a transitional period from 1. October 2023 and coming into full effect on 1. January 2026. Many European companies will be affected, as it is the importing party which bears the responsibility to report and later pay the calculated carbon price differential. Collecting and submitting the correct CBAM data is a complex task since it requires a large number of details from the production facility. Danish Industry has an office in Shanghai with a specialised function to support European companies with ESG related issues, including CBAM data collection and reporting.

Check if your imported goods are affected in this list list of CBAM-affected products.

The complexity and scope of CBAM can be seen in The original EU CBAM template

Upon opening the template, even the most seasoned ESG professionals will realise the scale and complexity of the CBAM reporting data . It should be noted that default values won't be allowed going forward, so actual data from your exporting partners will be necessary.

Collecting and reporting on CBAM is a complex task, and the excel sheet may seem overwhelming. However, through our experience in China we have strong expertise and smarter ways to support your data gathering for CBAM in China. CBAM Data should be viewed as a part of your company's overall ESG policies, such as CSRD, so by implementing strong systems from the beginning it will make the entire process easier.

So please contact us to ensure you get the help you need in collecting the correct CBAM data in China.

Contact us for help!

We at Danish Industry have expertise and partners to help you with collecting your CBAM data in China, so please reach out if you need support.

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Regulations mean European companies will need to know their importers emissions

CBAM Resources

Below are some different resources to help you learn more about CBAM.

Necessary actions for importers of steel and aluminium products from China

Under the new EU regulation CBAM (Carbon Border Adjustment Mechanism), importers of selected high emission materials to Europe must quarterly report in detail on the emissions of these goods. We have written an article on the necessary actions you should be aware of. Click the button to read more.

European Commission - Carbon Border Adjustment Mechanism

The EU Commission provides an extensive overview of what CBAM is, why it is being implemented, and what companies must be aware of regarding reporting.

RESET Carbon - CBAM:

An Opportunity To Take Action on Scope 3

CBAM Allows companies to take action against scope 3

RESET Carbon explains how many see CBAM as a risk, but it can also present itself as an opportunity for companies to engage with suppliers on scope 3 emissions. In the article RESET cover some of the possible opportunities of CBAM in Asia, as well as how to seize them.

European Commission - Carbon Border Adjustment Mechanism