Carbon Border Adjustment Mechanism (CBAM) - an important policy of the European Union (EU) aimed at reducing greenhouse gas emissions - can significantly impact the import-export activities of businesses. The Carbon Border Adjustment Mechanism (CBAM) is implemented in three main phases:
Phase 1: Transition Phase (01/10/2023 - 31/12/2025) – No CBAM Tax Applied: Requires businesses exporting CBAM-covered goods to the EU to report the greenhouse gas emissions of their products.
Phase 2: Partial Implementation Phase (01/01/2026 - 31/12/2033): CBAM tax begins: Businesses exporting CBAM-covered goods to the EU must purchase and submit CBAM certificates corresponding to emissions exceeding the free threshold.
Phase 3: Full Implementation Phase (01/01/2034 and onwards): Businesses exporting CBAM-covered goods to the EU must pay 100% of the CBAM fee for the entire amount of emissions from their products.
This is a mandatory regulation for businesses, initially affecting those in the six (06) directly impacted industries: Steel, Cement, Aluminum, Fertilizers, Electricity, and Hydrogen. Implementing and complying with the regulation at this stage presents several challenges due to the lack of specific guidance, language barriers, and complex calculation methods, as well as the complicated application timeline.
Understanding this, we provide CBAM Impact Assessment and Reporting Consultancy services to help businesses:
Impact Assessment: Identify the extent of CBAM's impact on the company's business operations.
Compliance Planning: Develop a specific strategy and plan to comply with CBAM regulations.
Reporting Support: Assist businesses in carrying out CBAM reporting procedures in accordance with EU regulations.
Solution Advisory: Propose optimal solutions to minimize the negative impact of CBAM and maximize its benefits.
We will help businesses minimize the risk of non-compliance, thereby saving costs, enhancing competitiveness, and ensuring brand reputation in the market by adhering to international regulations.
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