Carbon Border Adjustment Mechanisms (CBAM), led by the European Union, introduce carbon-linked compliance obligations on selected imports such as steel, aluminum, cement, fertilizers, hydrogen, and electricity. The regime begins with reporting requirements before financial liabilities are imposed and is expected to expand in scope over time. Early experience shows that detailed emissions data, robust audit trails, and clear cost-allocation models are essential. Suppliers with stronger carbon performance gain competitive advantage, while companies must reassess contracts, sourcing strategies, and internal controls. CBAM signals a broader shift toward integrating carbon pricing into global trade.