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.
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 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.
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.