EU Publishes a Set of Guidance Documents on the Implementation of the Carbon Border Adjustment Mechanism (CBAM)

On 14 August 2026, the European Commission published a set of 10 guidance documents to support the implementation of the Carbon Border Adjustment Mechanism (CBAM) during its definitive period.

The guidance package is intended for various stakeholders, particularly operators of installations located outside the EU that produce CBAM-covered goods. It marks the end of the use of estimated data and requires manufacturers to have their actual emissions verified.

4 General Guidance Documents and 6 Sector-Specific Guidance Documents

Stringent Technical Rules for 6 Key Sectors

• Iron and steel: Clearly define emissions accounting boundaries for conventional blast furnace technology, direct reduced iron (DRI), and electric arc furnace (EAF) processes.
• Aluminium: Standardise separate measurement formulas for primary aluminium production, recycled secondary aluminium, and downstream extrusion processes.
• Cement: Provide detailed requirements on calculation boundaries and emission factors for the clinker production process.
• Fertilisers: Establish rules for accounting for the complex value chains of ammonia and nitric acid.
• Hydrogen and electricity: Provide accounting frameworks for electrolysis technology, steam methane reforming (SMR), and direct power purchase agreements (PPAs).

Goods Entering the EU Are Subject to Controls in Three Key Areas

• Emissions data: Data must reflect actual emissions measured at each individual plant and be calculated in accordance with EU formulas. The use of generic estimates or inadequately substantiated declarations may result in the application of default values, together with a penalty rate.
• Mandatory annual verification: Annual verification must be carried out by independent verifiers accredited by the EU. Reports that are not accompanied by compliant verification certificates will be rejected for customs clearance.
• Higher carbon certificate costs: Carbon certificate costs will increase significantly for plants that rely on grid electricity with high emissions intensity.

For Vietnam, iron and steel and aluminium—the country's two major export sectors to the EU—will face the greatest pressure. As domestic average emissions levels remain higher than the EU's benchmark threshold, businesses that have not proactively decarbonised may incur additional carbon costs ranging from hundreds to thousands of USD per tonne of goods, directly eroding their price competitiveness.

3 Actions Businesses Need to Take Immediately

• Invest in measurement and monitoring infrastructure: Smart meters, continuous emissions monitoring systems (CEMS), IoT sensors, and specialised carbon accounting software platforms should be deployed to ensure that data are traceable in real time.

• Review and optimise production processes: Reduce energy consumption and develop a roadmap for transitioning to renewable energy through the PPA mechanism.

• Standardise documentation in accordance with EU methodologies: Ensure that every emissions figure meets the requirements for independent verification.

View the full set of guidance documents at here