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EU CBAM · Live since 1 Jan 2026 · Steel & aluminium exporters
Default values cost you more
Home/ESG Advisory/CBAM for Thai Exporters
Carbon Border Adjustment Mechanism · Thailand

EU CBAM is live. Your embedded emissions are now a price.

Since 1 January 2026, EU importers must buy certificates for the carbon embedded in covered goods — iron & steel, aluminium and more. If you can’t hand them verified emissions data, they use default values that assume the worst. For coal-weighted Thai production, that penalty is real — and avoidable.

฿28bn
Thai EU exports in scope, 2026 (est.)
1 Jan2026
Definitive regime live — certificates required
2
Most-exposed sectors: steel & aluminium
2028
Proposed expansion to ~180 downstream products
Why it stings for Thai producers

The default penalty.

CBAM prices the actual carbon in your product — but only if you can prove it. Without verified, product-level emissions data, EU importers apply conservative default values, and Thai production’s coal-heavy grid means those defaults can sit well above your real footprint. You end up paying for emissions you didn’t make. A credible, verification-ready product carbon footprint is the difference between the default bill and your true, lower one.

What actually has to happen

From product to proof.

1

Map the product & boundary

Define the covered goods, production routes and the CBAM system boundary for each export line.

2

Calculate embedded emissions

Build the product carbon footprint to ISO 14067 / TGO CFP — direct and relevant indirect emissions, with real activity data, not defaults.

3

Make it verification-ready

Document methodology and data quality so an EU-side verifier — and your buyer — can rely on the number.

4

Produce the EU-facing pack, in English

The emissions declaration and supporting documentation in precise English for your importer, mirrored in Thai for your internal and regulatory files.

Othello holds the carbon credentials (ISO 14067, ISO 14064, TGO CFO/CFP) and is an ISO 17100 certified bilingual firm — so the emissions figure and the documentation that carries it to Europe come from one accountable bench.

Straight answers

CBAM, answered.

Is EU CBAM actually in force yet?
Yes. The definitive CBAM regime has been live since 1 January 2026. The transitional reporting-only phase ended in 2025; importers now must buy CBAM certificates for the embedded emissions of covered goods. For Thai exporters of in-scope products, that cost is being priced into EU buyers’ decisions now.
Which Thai exports are affected?
The covered categories are iron & steel, aluminium, cement, fertilisers, hydrogen and electricity. For Thailand the exposure concentrates heavily in iron & steel and aluminium — research estimates roughly THB 28 billion of Thai EU exports (~3.8%) sit in scope in 2026. A proposed scope expansion would add ~180 downstream products from 1 January 2028.
What decides how much CBAM costs us?
The embedded emissions of your product. If you cannot provide verified actual emissions data, EU importers fall back to default values — which are deliberately conservative and often penalise producers whose real footprint is lower. Thai production is frequently coal-weighted, so defaults can overstate you. Accurate, verified product-level emissions data is what lowers the bill.
How is this different from our SET / TGO reporting?
CBAM is product-level embedded emissions for a specific export, documented to an EU-facing standard and language — not organisation-level ESG disclosure. The underlying carbon competency overlaps (ISO 14067 / product carbon footprint), but the deliverable, the audience, and the language are different. It is an export-compliance problem, not an investor-relations one.
Can Othello produce the emissions figures and the documentation?
Yes — that intersection is our niche. We build the product carbon footprint (ISO 14067 / TGO CFP), prepare it verification-ready, and produce the EU-facing documentation in precise English (and Thai for your internal and regulatory files). Certified carbon data and certified language, from one bench.
Stop paying the default

Put a real number on your embedded emissions.

Tell us your product and volumes — we scope the product carbon footprint and the EU-facing documentation, with a fixed quote back within one business hour, under NDA.

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