Carbon Border Adjustment Mechanism
Carbon Border Adjustment Mechanism (CBAM) is a tool which was introduced by the European Union (EU) to exercise control over carbon emissions and to make the carbon cost of imported goods and those which are produced in the EU region to be same.
What is CBAM?
Carbon Border Adjustment Mechanism (CBAM) is one of the component of EU climate policy that aims to reduct the greenhouse gas emissions and become carbon neutral by 2050. It was launched under EU Green Deal. CBAM is designed to avoid “carbon leakage,” which occurs when companies move production to the countries with less environmental regulations, which results in overall high emissions.
CBAM is presently targetting at carbon-intensive industries such as steel and iron, cement, aluminum, fertilizers, and electricity by applying a carbon price on the import of these products into EU. This will ensure that outside-EU manufacturers are charged with the same carbon expenses as manufacturing in EU.
CBAM is among the core components of the EU’s “Fit for 55” package. It will help to reduce EU emissions by 55% by 2030 compared to 1990 levels. As part of this goal, CBAM supports EU Emissions Trading System (ETS) and also promotes cleaner production by global industries, in line with the EU’s long-term ambition of becoming climate neutral.
Methodology for the Carbon Border Adjustment Mechanism (CBAM)
The Carbon Border Adjustment Mechanism (CBAM) involves the calculation, reporting, and verification of carbon emissions associated with imported goods into the European Union (EU). This will ensure the compliance with EU’s carbon pricing policy and also with EU Emissions Trading System (ETS). It follows the following steps:
1. Scope Identification
2. Carbon Emissions Calculation
Calculate the emissions of the product under the scope.
3. CBAM Certificate and Pricing
4. Reporting and Verification
These steps align carbon costs for EU and non-EU producers with CBAM compliance and EU’s long-term goals.
How Growlity Can Help with CBAM Compliance?
At Growlity, we help businesses to navigate the requirements of the Carbon Border Adjustment Mechanism (CBAM) which will ensure smooth and compliant entry into the European market. We can assist you by following ways:
CBAM Compliance Assessment
Assess your product’s compliance with CBAM regulations to ensure it meets EU requirements.
CBAM Certificate Management
Support in purchasing, managing, and submitting certificates to offset emissions and ensure compliance.
Carbon Footprint Calculation
Calculate product’s carbon footprint using standards like the GHG Protocol and ISO, aligned with CBAM needs.
Verification and Audits
Verification support to ensure your data passes audits and adheres to EU standards, reducing compliance risks.
Reporting and Documentation
Assistance in preparing quarterly and annual reports in full compliance with CBAM guidelines.
Strategic Advisory
Providing strategic guidance to reduce carbon taxes, mitigate risks, and ensure CBAM compliance.
Why Choose Growlity?
- Expert Guidance: Our team of sustainability experts understands the complexities of CBAM and EU carbon regulations which will ensure that your business meets all requirements.
- End-to-End Support: From carbon calculations to certificate management and reporting, we provide a complete compliance solution.
- Tailored Approach: We customize our services to meet the specific needs of your industry, product type, and carbon footprint.
- Sustainability Leadership: Growlity not only helps you comply with regulations but also enhances your sustainability performance and reputation in the global market.
Our Services
Our multidisciplinary teams can help companies understand the risks and opportunities arising from climate change and materiality issues to achieve growth with sustainability.
Strategy
Consulting
Reporting
Training
Get In Touch
316, RAJHANS MONTESSA, AIRPORT ROAD,
SURAT – 395007. INDIA
+91 (960) 131 0999