CBAM requires reporting on direct and indirect emissions (Scopes 1, Scope 2 and some Scope 3) of a range of carbon-intensive products as they enter the EU. At launch, CBAM will apply to a limited number of sectors at a higher risk of carbon leakage, including electricity, hydrogen, cement, fertilisers, aluminum and iron & steel. Covered EU importers began reporting from 1 October 2023 and must start making payments from 2026. More industrial sectors will be added by 2030 including oil refining, upstream (fuel production), all metals, pulp & paper, glass & ceramics, acids & organic chemicals, aviation, maritime and lime. Operators from all jurisdictions will report embedded emissions to covered EU importers. The importers report to their national authority who will then report to the European Commission. All reporting will be done through a central registry planned to integrate with EU customs systems. Industrial organisations that cannot yet provide transparent, consistent and complete reports around both direct and indirect emissions need to act fast. The EU Implementing Regulations7 (summary table below) outline what emissions - direct or indirect - and what GHG gases are to be reported on by product. Initially, only indirect emissions are required to be reported for electricity, cement, and fertilisers. However, the CBAM regulation states that â€˜as soon as possibleâ€ indirect emissions will be required to be reported across all products.