1.   WASI
  2. Sustainability
  3. CBAM

The European CO2 Boundary Compensation Scheme

Carbon Border Adjustment Mechanism

CBAM - Carbon Border Adjustment Mechanism.

 

From 01 October 2023, the new EU Regulation 2023/956 will come into force. CBAM means that all importers who import certain products from a third country into the European Union will have to pay compensation for the emissions generated in production.

The intention behind CBAM?

 

The new EU Regulation 2023/956 will come into force from 1st October 2023. “CBAM” (Carbon Border Adjustment Mechanism) means that all importers who bring in certain products from a third country into the European Union must pay compensation for the emissions caused during production. The intention is to create protection for European companies, as producers in third countries often do not adhere to climate protection requirements and therefore have cheaper production options. The regulation obliges importers to prove and document the CO2 emissions of the production chain and offset them by purchasing certificates. During a transitional period from 1st October 2023 to 31st December 2025 the new regulation will initially apply to a limited extent. This regulation will come into full extent in January 2026.

This means in detail:

  • The affected sectors are cement, electricity, fertilizers, hydrogen, iron, steel and aluminum
  • The data to be collected is complex and extensive and must be verified by the EU
  • Direct and indirect emissions (e.g. from preliminary products) must be recorded
  • The different production sites must be considered individually - from the raw material to the final product
  • Total emissions must be stated in tons of CO2
  • These values ​​must be reported in the introductory period one month after the end of the quarter (finally probably at shorter intervals)
  • Initially the emissions caused by transport are not relevant but there are plans to include sea freight in the reporting requirement in the short term
  • If the requirements are not adhered to, sanctions will be imposed which should be significantly higher than the certificate price

What does that mean for you as a customer?

 

Since we import the goods for you this regulation does not affect you. We are taking care of the entire process and you buy the goods from us as usual. 

More information will follow soon.

(Kopie 3)