Your buyer added a CBAM clause to your contract

As CBAM costs rise, EU buyers are writing them into purchase contracts. The clause decides who pays when data is late or missing.

Reviewed by the Carbon Passport compliance team, Singapore. Updated and checked against official EU sources on 28 September 2026. Rules change often; we update this page when they do.

Quick answer

A CBAM clause sets out what emissions data you must provide, by when, and who pays if default values are used. Negotiate realistic verification dates, a cap on any price adjustment linked to default values, and how verification costs are shared. Get legal advice on cost-sharing terms.

What this request is

New or amended wording in a supply agreement or purchase order that sets out your CBAM obligations: what data you'll provide, by when, in what format, whether it must be verified, and what happens to the price if you don't deliver or if the importer's CBAM costs change.

Why your buyer is asking

The importer pays for CBAM certificates, and costs rise each year as the CBAM factor increases and default value mark-ups go up from 10% in 2026 to 20% in 2027 and 30% from 2028. Buyers want certainty on data and a way to share those costs.

What to send

  1. A marked-up version of the clause with the changes you need
  2. Your data delivery timeline, including verification
  3. A proposal for how costs are shared if default values apply
  4. Confirmation of the installation and products the clause covers

Be careful about

  • Deadlines for verified data before verifiers can realistically visit
  • Uncapped price deductions tied to default values
  • Clauses that make you pay penalties for the importer's own filing errors
  • Automatic price changes without a formula you can check
  • Get legal advice before agreeing to cost-sharing terms

A reply you can adapt

Dear [name],

Thank you for the updated terms. We support the CBAM clause in principle and will provide emissions data for each reporting period.

We propose three changes: verified data by [month] rather than [month], in line with verifier availability; any price adjustment linked to default values capped at [x]% and applied only if our data is late; and a shared approach to verification costs. Our suggested wording is attached.

Kind regards,
[name]

Keep a copy of everything you send. The same buyer will ask again next year, and other buyers will ask for the same data.

Got a request you're not sure about?

Send us what your buyer sent. We'll tell you what they need and what it will take, free, within one week.

Send your request

Frequently asked questions

What is a CBAM clause?

Contract wording setting out a supplier's CBAM data obligations and how CBAM-related costs are handled between buyer and supplier.

Can a buyer reduce my price because of CBAM?

Only if the contract allows it. Many clauses link price adjustments to missing or late data, which you can negotiate.

Who pays for verification?

It's negotiable. Suppliers often pay because one verification serves all buyers, but key buyers sometimes contribute.

Sources

This guide explains the rules in plain language. It isn't legal advice; see our disclaimer. Always check the current official texts and your buyer's instructions.

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