Carbon Border Adjustment Mechanism (CBAM)

As part of the EU Green Deal – G55 Commitment, the European Union is implementing policies, including the Carbon Border Adjustment Mechanism (CBAM), impacting international businesses. EU importers must submit precursor emission data from non-EU countries which includes Indian manufacturers and exporters. At present major six sectors have been covered under CBAM, which will be extended to other sectors as well by 2030.

CBAM is the Carbon Border Adjustment Mechanism, a policy tool for the calculation of tax on EU importer for the embedded emissions of their goods. It requires, declaring their embedded emission from their suppliers too if imported from Non-EU countries for defined goods quarterly. To keep up with competition and business continuation Non-EU countries exporters are required to submit their installations data with the same defined timeline as well.  

• Assessing if products fall within the scope of CBAM regulation
• Reviewing the applicability of CBAM to processed goods resulting from covered items
• Collecting and analyzing data on embedded emissions
• Considering the establishment of a dedicated CBAM organization for efficient information management
• Ensuring timely and accurate delivery of relevant information in the required format to EU importers
• Prioritizing the accuracy of CBAM-related information sharing with EU importers during the transitional period
• Aim to minimize carbon levy impact (if applicable) post-transition, while adhering to the above steps

Any installations outside EU countries willing to export the defined goods need to comply with CBAM. The CBAM regulation currently is defined for imports of cement, iron and steel, aluminium, fertilizers, electricity and chemicals along with some identified precursors.

The CBAM is likely to cover additional sectors and products and is expected to cover all sectors included in the European Union Emissions Trading Scheme (EU ETS) by 2030.

Direct emissions’ refer to emissions from the production processes of goods, including emissions from the production of heating and cooling consumed during the production processes, regardless of the location of the production of the heating and cooling.

‘Indirect emissions’ means emissions from the production of electricity, which is consumed during the production processes of goods, regardless of the location of the production of the consumed electricity.

Addressing the gap analysis

• Comparing the company's current practices vis-à-vis CBAM requirements and identifying potential gaps
• Proposing strategies to streamline requisite procedures for easing CBAM requirements fulfilment, including the creation of a CBAM organisation within the entity

Monitoring, measuring and reporting

• Developing a framework for monitoring, measuring and reporting of embedded GHG emissions
• Capacity development with respect to all aspects of emissions estimation, calculations, reporting and decarbonization

The cost of CBAM services depends on several factors, like the size of your company, the number of sites, the number of products whose embedded emission you have to calculate, the measurement and monitoring system maturity and the complexity etc. All these factors can influence the duration of the assurance as well as the price. Thus, the costs for CBAM services cannot be presented as a lump sum. We will be happy to make you an individual offer for your company, organization or agency.

• Expertise in CBAM Compliance: Our team possesses extensive knowledge and expertise in Carbon Border Adjustment Mechanism (CBAM) regulations, ensuring accurate reporting and compliance with EU requirements.
• Tailored Solutions: We offer customized services designed to meet the specific needs of your organization, providing comprehensive support throughout the CBAM reporting process.
• Assurance and Accuracy: With our meticulous approach to data verification, you can trust that the GHG data submitted to EU customers will be accurate and compliant with CBAM standards.