CBAM
Since October 2023, the Carbon Border Adjustment Mechanism (CBAM) has been gradually introduced in the EU so that participating companies inside and outside the EU are brought into line with the reporting obligations and methods for determining emissions under the EU Emissions Trading System.
Initially, the CBAM will apply to the sectors steel, aluminium, iron, electricity, cement, fertilizers and hydrogen, as the processes for manufacturing these products are highly CO2-intensive and therefore subject to a high carbon leakage risk, as the sectors affected by European CO2 pricing are at risk of moving to countries without high greenhouse-gas pricing.
The purpose of the CBAM is to ensure that the same carbon price applies to imported products as if they were produced in the country in order to prevent competitive disadvantages. The free allocation of emission allowances for industrial companies as protection against direct carbon leakage through the EU ETS is therefore no longer necessary. In addition, the carbon price for imports also creates financial incentives for companies in third countries to invest in climate protection and motivates third countries to also develop carbon pricing with a steering effect.
We are happy to support you in the procurement of carbon emission allowances, in the development of your CO2 portfolio management and an optimal procurement strategy.