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Leveling the Playing Field: THE CARBON BORDER ADJUSTMENT MECHANISM

A new tool for a fairer and greener future.

The Carbon Border Adjustment Mechanism (CBAM) is a policy tool from the European Union that aims to reduce carbon emissions globally by imposing a fee on carbon-intensive imports from countries that do not have equivalent climate policies.

CBAM is designed to prevent the phenomenon of “carbon leakage,” which occurs when companies relocate their operations to countries with weaker climate regulations to avoid carbon taxes or emission reduction requirements.

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Get ready for CBAM! Guide available for download.

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In its first phase, the CBAM will start by covering the most carbon intensive sectors: iron and steel, cement, aluminum, fertilizers, electricity, and hydrogen. It will apply from 1st October 2023, with a transition period where the obligation of the importer is limited to reporting. CBAM full measures will enter into place on 1st January 2026. 

EU Importers: How to get ready for CBAM

The cost of CBAM certificates will fall upon the importers, but the regulation will of course impact producers too, through commercial relationships and competition between suppliers.

Map out your imports

Identify for each category of CBAM goods which non-EU suppliers you work with and what volumes you import from each of them. 

Contact your suppliers

Ask if they have already calculated the embedded carbon footprint of the products you purchase from them. 

Estimate the potential cost

Use default values of carbon intensity factors for imports for which the carbon footprint has not yet been calculated by the supplier.

Identify hotspots

Identify the top suppliers that generate the highest CBAM tax costs. 

CBAM Essentials: A Workshop for Businesses 

We offer a private workshop for all European importing companies that may be affected by the CBAM mechanism. In this session, we will go over the fundamental measures and clarify any doubts you may have. Moreover, we can conduct workshops for your main suppliers to guide both parties. 

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Exporters from outside EU: Key actions

Enhance internal capabilities

Upskill internally for your organization to gain a deeper understanding of how CBAM will work and how it could impact you.

Identify the affected goods

Scan all the company’s exports and record the production location and volumes of each export.

Calculate your products’ emissions

Identify how to obtain each type of data (volumes, production technologies, energy sources, etc – for each good). Streamline emissions data collection and choose the most accurate emission factors.

Calculate the additional costs

Make a projection of the extra charges that your EU customers might incur. Contact them to discuss the likely impact of CBAM and agree on collaborative mitigation actions. 

Reduce your emissions

Position yourself as an industry leader and gain a competitive edge in the market.

Carbon footprint Calculation 

We will help you to understand your company’s emission sources and support you on your way to decarbonization. 

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Establish a reduction strategy

Mitigate your carbon footprint and enhance your competitiveness in the market by implementing internal measures such as adopting renewable energy sources like biofuels, EACS, or renewable gas. 

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CONTACT US AND Limit the financial impact CBAM can have on your business.

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