As climate change impacts are getting more severe, regulators globally are looking into regulatory regimes to decarbonize. One such regulation that emerged is the Carbon Border Adjustment Mechanism (CBAM). We understand that reducing carbon footprints has become critical for both environmental stewardship and business success. We want to help small and medium enterprises take this chance to understand their carbon footprint impact and comply with legal requirements at affordable rates.
Intent of CBAM regulations
The European Commission proposed Carbon Border Adjustment Mechanism (CBAM) as part of the “Fit for 55” legislative package that aims to align the EU taxation policies with the goal of reducing net greenhouse gas (GHG) emissions by at least 55% from 1990 levels by 2030 with the overarching goal to achieve climate neutrality in Europe by 2050.
Carbon price on certain goods upon importing into the EU by 2026
Carbon price is paid using CBAM certificates which are generated based on the actual embedded emissions.
Transition period starts from 1 October 2023 to 31 December 2025. Only reporting of embedded emissions is required.
Unreported embedded emissions may result penalty of 10 to 50 EU per tonnes of embedded carbon
CBAM implementation timeline
CBAM reporting process
How to comply to CBAM on your own
Read the CBAM regulation (23 pages) and its Annex (97 pages)
Either read the Guidance Document on CBAM Implementation for Importers of goods into the EU (104 pages) or read the Guidance Document on CBAM Implementation for Installation Operators outside the EU ( 266 Pages)
Calculate embedded emissions based on the relevant Guidance documents on your own.
Input information into the submission excel template : CBAM communication template for installations.
Submit to regulators as importer or submit to relevant importer for regulatory submission.
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