CBAM and EUDR: Key points from Enterprise Ireland’s recent webinar

Enterprise Ireland’s recent webinar highlighted two major EU regulations that will shape sustainability compliance for Irish businesses: the Carbon Border Adjustment Mechanism (CBAM) and the EU Deforestation Regulation (EUDR). While timelines are shifting, the overall regulatory direction is clear: greater transparency, stronger data requirements, and rising carbon-related costs.

CBAM – Rising Carbon Costs for Imports and EU-Produced Goods

CBAM will have the most immediate impact on Irish construction supply chains. The mechanism places a carbon price on imports such as steel, aluminium, and cement, ensuring they face the same carbon cost as EU-produced materials. From 2026, importers must report verified embedded emissions and purchase CBAM certificates.

The webinar also underlined a critical point for domestic supply chains: EU-manufactured goods will face rising carbon costs as free ETS allowances taper sharply between 2026 and 2034, increasing the price of emissions-intensive materials regardless of origin. Accurate supplier data and long-term procurement planning will therefore be essential.

EUDR – Deferred by one year

The EUDR – designed to ensure that certain commodities entering the EU are deforestation-free – has now been deferred by one year, with obligations expected to apply from 30th December 2026.

Although timelines have shifted, the regulation will still introduce strict due diligence requirements, including geolocation data and comprehensive supply-chain traceability for Operators and Traders. CIF has developed a Guidance Note and a shorter member briefing on EUDR, both available on the CIF website.

Preparing for Compliance

The webinar stressed that early preparation is the strongest defence against future compliance risk. Businesses should now:

• Map supply chains and identify high-risk materials
• Engage suppliers on emissions and traceability data
• Strengthen internal reporting and verification capability

Both CBAM and EUDR point in the same direction: more robust sustainability and provenance data will become a standard requirement of doing business in the EU.