👉What is CBAM?🌟
The Carbon Border Adjustment Mechanism (CBAM): A policy by the European Union to prevent carbon leakage by ensuring imported goods face the same carbon price as EU domestic products.
Objective: Align imported carbon-intensive goods with the EU’s climate-neutrality targets by 2050, supporting global decarbonization efforts.
👉How It Works:
Importers must declare the quantity of goods and their embedded emissions annually. They must surrender CBAM certificates equivalent to the carbon footprint of imported goods.
👉Who Does CBAM Apply To?
Sectors with high emissions and a significant risk of carbon leakage, including: Cement, Iron and Steel, Aluminum, Fertilizers, Electricity, Hydrogen.
Current Status & Future Outlook:
✅ CBAM transitional phase:
· From Oct 2023 – till June 2024: Importers can report emissions using default values provided by the European Commission.
· From July 2024: Actual emissions data from producers or suppliers becomes mandatory for importers.
· From January 2025: Only the EU methodology will be accepted for calculating and reporting embedded emissions.
✅ Definitive Phase (2026):
· CBAM integrates with the EU Emissions Trading System (ETS).
· Financial penalties will apply for non-compliance by importers.
🚀Approach for Indian exporters:
For Indian manufacturers from these emission-intensive sectors, aligning with CBAM requirements is crucial to maintain competitiveness in the EU market. A practical approach involves developing EPDs as per EN 15804 or PCF as per ISO 14067, which provides transparent, third-party verified data throughout the lifecycle of the product, facilitating compliance with CBAM’s embedded carbon reporting requirements.
Contact us today to schedule a free basic consultation on how EPD and PCF of your products could pave ways for your sustainable growth targets.
Please contact us at info@conserveconsultants.com or reach us on WhatsApp at +9190030 97071. You can also visit our website https://lnkd.in/dThYxcG2
EPD International |CII Godrej Green Business Centre |Swasthi Krithivasan
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