The Carbon Border Adjustment Mechanism (CBAM) of the European Union (EU) is an instrument for putting a price on the carbon emitted during the production of products entering the EU and encouraging cleaner industrial output in non-EU countries.
The Carbon Border Adjustment Mechanism (CBAM) is an environmental policy mechanism meant to assist the EU’s climate aspirations of attaining a net reduction of greenhouse gas (GHG) emissions of at least 55% by 2030 and climate neutrality by 2050.
The CBAM does not target countries but the embedded carbon emissions of products imported into the EU for specific sectors that are within the scope of the EU ETS and the most at risk of carbon leakage. They include namely: Cement, Iron and Steel, Aluminium, Fertilizers, Hydrogen And Electricity. It also includes some precursors and some downstream products of the aforementioned sectors.
Embedded emissions include both direct and indirect emissions from the manufacturing process, as well as emissions embedded in precursor materials, resembling the goods’ carbon footprint. It is important to note that the scope of CBAM is primarily aligned with the EU ETS rules, leading to other methods in calculating product carbon footprints such as the “GHG Protocol” or ISO 14067.
Also, if you sell your products to traders who then sell them to EU customers, your goods fall under the CBAM. In all those cases where CBAM goods end up being imported into the EU, at some point the importer will contact you to gather information on the “embedded emissions” of these CBAM goods.
Furthermore, if you sell your goods to merchants who subsequently sell them to EU clients, your items are subject to the CBAM. In all circumstances where CBAM items are imported into the EU, the importer will contact you at some time to acquire information on the “embedded emissions” of these CBAM goods.
MITCON has been extensively working in the field of Carbon Footprint Reduction for various customers across the countries. With in-house expertise, MITCON can smoothly guide you to report on CBAM requirements at ease and assist you in reducing the carbon footprint associated with your product.
Mitcon’s Carbon Credit services help to make it easy for both individuals and companies to combat climate change and achieve both their specific sustainability goals.
We assist both domestic and international clients by connecting them with high-quality emission-reduction projects, providing climate education, and developing innovative solutions that ensure effective climate action.
You may reduce your own carbon footprint and offset your unavoidable emissions to aid in the transition to a low-carbon, sustainable future by being aware of your decisions and how they affect the environment.
Total Projects Completed
Syndicated Carbon Funds – Projects of Carbon Credits.
Helped in generating revenue (in Cr.) from the sale of Carbon Credits
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