The EU CBAM regulation aims to align the carbon pricing of imported goods with that of domestic products, promoting global industrial sustainability.
From 2026, exporters must report and verify the carbon emissions of goods exported into the EU to ensure compliance with the CBAM regulation, prevent carbon leakage and support EU climate objectives. The current transitional phase, ending in 2025, allows businesses to prepare for these stringent requirements.
Industries and products affected:
- Cement
- Iron and steel
- Aluminum
- Fertilizers
- Hydrogen
- Electricity
The transitional period
Pre-verification is crucial for managing compliance risks. It ensures that companies accurately represent their carbon emissions, which is essential for meeting CBAM standards. The risks of non-compliance include:
- Negative verification outcomes: companies that fail to meet monitoring and reporting requirements may receive unfavorable verification opinions, leading to default carbon values that can negatively impact costs
- Contractual liabilities: exporters not adhering to CBAM standards may face penalties from European clients, potentially losing business to more compliant suppliers
- Reputational damage: firms that neglect carbon management and CBAM compliance could harm their reputation, affecting market standing and relationships
Jerónimo Casas, Global Product Manager Climate Change and Sustainability Solutions at SGS, said: “The implications of CBAM non-compliance encompass financial, operational and reputational risks. Early preparation and pre-verification are essential for mitigating these challenges.”
As the world’s leading certification, inspection and testing company, we offer expert support in compliance and pre-verification to ensure a smooth transition to mandatory CBAM verification in 2026.
Discover how our CBAM services can help you get ahead of the mandatory requirements.
For further information, please contact:
Jerónimo Casas
Global Product Manager Climate Change & Sustainability
Industries & Environment
t: +34 661 419 553
About SGS
SGS is the world’s leading Testing, Inspection and Certification company. We operate a network of over 2,500 laboratories and business facilities across 115 countries, supported by a team of 99,500 dedicated professionals. With over 145 years of service excellence, we combine the precision and accuracy that define Swiss companies to help organizations achieve the highest standards of quality, compliance and sustainability.
Our brand promise – when you need to be sure – underscores our commitment to trust, integrity and reliability, enabling businesses to thrive with confidence. We proudly deliver our expert services through the SGS name and trusted specialized brands, including Brightsight, Bluesign, Maine Pointe and Nutrasource.
SGS is publicly traded on the SIX Swiss Exchange under the ticker symbol SGSN (ISIN CH0002497458, Reuters SGSN.S, Bloomberg SGSN:SW).
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