Back to the blog

    CBAM liabilities are concentrated in steel and in a few exporting countries

    Some exporters face tariff-equivalent exposure far above the global average.

    CBAM is now a financial reality, and the cost burden is highly concentrated. Steel dominates expected liabilities, while some exporting countries face tariff-equivalent exposure far above the global average.

    Concentration is what makes the mechanism actionable. A small number of products and origins account for most of the expected cost, so a small number of supplier relationships account for most of a European importer's exposure. Those relationships are where co-financing a reduction pays back fastest, because the same tonne removed lowers the border levy and the importer's Scope 3 inventory at once.

    Exporters see the mirror image. A verified reduction at the plant becomes a selling point to European customers and a source of revenue through inset credits, rather than a cost to be absorbed. Carbon3 structures that exchange so both sides can recover value from the same physical reduction.

    Originally published on LinkedIn, 18 May 2026.