CBAM
Carbon Border Adjustment Mechanism (CBAM)
We have assisted clients across the Middle East, India and South East Asia with CBAM requirements and compliance. This includes handling reporting, verifying data, and ensuring report assurance. We prioritize the use of your own primary data sourced from your business, products, and supply chains, instead of relying on generic data or industry averages. This ensures that the emissions reported and taxed are accurate.
The European Union's Carbon Border Adjustment Mechanism (CBAM), effective October 2023, will impose a carbon tax on imports of products from environmentally unsustainable processes. Officially adopted on May 17, 2023, CBAM aims to prevent 'carbon leakage' by aligning import costs with the EU Emissions Trading System (ETS). Initially, it will cover imports of cement, iron and steel, aluminum, fertilizers, electricity, and hydrogen, requiring quarterly reports on volumes and greenhouse gas emissions, without financial adjustments. By 2026, CBAM will extend to additional products and introduce a 20-35% tax, with the full regulation taking effect in 2026 and the UK adopting CBAM in 2027. Compliance involves impact assessments, data collection, and reporting, with the first report due by January 31, 2024.
Our CBAM Carbon Footprinting Methodology
The CBAM Regulation mandates specific methodologies for carbon accounting within target industries, differing from those required by commonly used standards such as GHG Protocol or ISO accounting methodologies used in the Middle East, India and South East Asia.
We develop CBAM-compliant product carbon footprints using an accounting methodology entirely aligned with CBAM requirements. Our approach is regularly updated to reflect changes in the regulation over time. Companies in the Middle East can rely on us for the expertise necessary to determine both direct and indirect emissions for various products covered by the current scope of the CBAM regulation. This ensures companies can continue to engage successfully and remain compliant with revised EU import regulations and tariffs.
The effectiveness of carbon footprint approaches in capturing levels of impact varies based on factors such as the collected data, included impacts, and calculation methods employed.
Engineering Excellence for a Sustainable Future
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