CBAM
EU Carbon Border Adjustment Mechanism
CBAM (Carbon Border Adjustment Mechanism) is the EU's carbon border tax that applies to imported goods to prevent carbon leakage and align imported products with EU climate goals. It entered transition phase in October 2023, with full financial obligations starting January 2026.
Initial scope (2023-2025 transition): cement, iron and steel, aluminum, fertilizers, electricity, hydrogen. Importers must report embedded carbon emissions of these goods. From 2026: importers pay a CBAM certificate price equivalent to the EU ETS price, minus any carbon price already paid in the country of origin.
Future scope: the EU has committed to expanding CBAM to other sectors, including agricultural products (potentially fresh produce, processed food, and other categories) by 2030.
For Egyptian food exporters and EU importers, CBAM compliance now means: - Mapping the carbon footprint of products and processes (Scope 1, 2, 3 emissions). - Obtaining verified emissions data from suppliers in Egypt. - Reporting via the CBAM Registry every quarter (transition phase). - Preparing for the 2026+ payment obligations.
FoodGate Audit provides Carbon Emissions Analysis services aligned with CBAM and CSRD requirements: facility-level and shipment-level carbon footprint, verified per EU methodologies.