CBAM Solutions

The Carbon Border Adjustment Mechanism (CBAM) regulation is a tool introduced by the European Union (EU) to quantify a fair price on the Carbon emitted during the production of carbon-intensive goods that are entering the EU.

The European Union officially introduced the CBAM on 16th May 2023.

CBAM regulation shall be implemented in a phased matter.

Initially, the CBAM will enter the transitional phase on 1st October 2023 enforcing its first reporting period towards the end of January 2024.

The CBAM focuses on the embedded emissions of Carbon Intensive Goods!

Significance of CBAM

CBAM was first proposed in 2019 as a component of the EU’s Green Deal and shall act as an integral element of the Fit for 55 package.

The Carbon Border Adjustment Mechanism (CBAM) regulation is a tool introduced by the European Union (EU) in an attempt to address the global problem of climate change.

Introduction of Carbon Tax

By setting a fair monetary amount against the carbon emitted during the production of the carbon intensive goods

Mitigate Risk of Carbon Leakage

When EU offloads the production of carbon intensive goods to countries and geographies that have less stringent climate policies in place

Sustainable Practices

Introduce and Encourage the development of sustainable industrial and production practices in Non-EU countries

Carbon Intensive Goods

Carbon Intensive Goods refer to goods / products that emit high concentration of carbon and or carbon equivalent emissions during their manufacturing or production processes.

Aluminum

Cement

Electricity

Fertilizers

Hydrogen

Iron & Steel

Course of Action

For the Carbon Intensive Goods, quaterly disclosures are mandated for their embedded Carbon Emissions.

Eligibility

Boundaries

Methodology

Attribution

Reporting

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Summary
Carbon Border Adjustment Mechanism (CBAM) Solutions - GreenSutra | India
Article Name
Carbon Border Adjustment Mechanism (CBAM) Solutions - GreenSutra | India
Description
Carbon Border Adjustment Mechanism Solutions by GreenSutra helps organisations to comply with the (CBAM) regulation which has been introduced by the European Union (EU) to quantify a fair price on the Carbon emitted during the production of carbon intensive goods that are entering the EU.
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GreenSutra
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