Greenex Environmental

Life Cycle Assessment Services ,Environmental Sustainability Services, Carbon Footprint Services, Environmental Impact Assessment Services, Sustainability Report Services, Environmental Product Declaration Services, Green Technology Services, Lifestyle For Environment Services, Measuring Carbon Footprint Services, Green Building Certification Services, Environmental Audit Services , Water Footprint Services

CBAM

Carbon Border Adjustment Mechanism (CBAM)

The EU’s Carbon Border Adjustment Mechanism (CBAM) is the EU’s tool to put a fair price on the carbon emitted while producing carbon-intensive goods. The CBAM entered into application on 1st October 2023, and the transitional phase of CBAM will continue till 31st December 2025 and the definitive period of CBAM will start from 1st January 2026. The (CBAM) aims to assist “fit for 55” up to 2030 and carbon neutral up to 2050.  During the transitional phase, declarants need to submit the quarterly CBAM report on carbon-intensive products exported in the EU. In the definitive period of CBAM, the declarants need to pay the carbon tax for carbon-intensive products exported in the EU.

Carbon Border Adjustment Mechanism (CBAM) Image

Phases of CBAM

1. Transitional Period (1 October 2023 to 31 December 2025)

Designed as a “learning phase”, during which CBAM importers are required to report a set of data, including emissions embedded in their goods, without paying a financial adjustment for the embedded emissions. However, penalties may be imposed, for example for failing to submit the required quarterly CBAM reports. Importers will have to report at the end of each quarter emissions embedded in their goods subject to CBAM without paying a financial adjustment.

2. Definitive Period (starting on 1 January 2026)

CBAM, which mirrors the EU ETS, involves importers buying certificates tied to their emissions.

During the transitional period, the reporting period for importers (reporting declarants) is quarterly, with reports due within one month.

The first quarterly report is for the period October to December 2023, with the report due to be submitted to the CBAM Transitional Registry by 31 January 2024.

The last quarterly report is for the period October to December 2025, with the report due to be submitted to the CBAM Transitional Registry by 31 January 2026.

The quarterly report should summarize the embedded emissions in goods imported during the previous quarter of the calendar year, splitting out direct and indirect emissions.

Sectors Covered

  1. Cement
  2. Iron and Steel
  3. Hydrogen
  4. Fertilizers
  5. Electricity
  6. Aluminium

Our scope of work

  1. To analyze the Manufacturing process of Production.
  2. To Identify the Source of Emissions.
  3. Collect the Data as per the CBAM Template.
  4. Calculation of Direct and Indirect emissions.
  5. Prepare and fill the Excel sheet or Template which is provided by CBAM.

What is the necessity of CBAM?

CBAM is a part of a broader trend towards carbon pricing and environmental regulations. By embracing CBAM, companies position themselves as leaders in sustainability, demonstrating their commitment to long-term environmental stewardship and future-proofing their operations against further regulatory changes. CBAM is a regulatory requirement for companies importing goods into the EU, and failure to comply may result in penalties. By adhering to CBAM, companies demonstrate their commitment to environmental regulations and maintain their reputation as responsible businesses.  

Why Greenex?

We perform a detailed study on the manufacturing process of the products (carbon-intensive goods) exported in the EU. Analyze the total carbon emission throughout the process that fuel used and raw material production processes.

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