CO2 IQ’s Post

Signs that China is considering responding to CBAM by expanding the sectors covered by its ETS (China’s ETS already covers around 40% of their emissions). It’s a matter of time before this is also applied to their international trade. https://lnkd.in/eXAFhvZE

#SUERFpolicynote "Carbon borders on both sides of the channel: Implications of the UK and EU carbon tariffs" by Barbara Sophia Kölbl (PhD), Stefan Koopman and Pablo R. | RaboResearch Following the launch of the #EU CBAM, the #UK announced plans to implement their own CBAM. We analyze the potential impacts of separate EU-UK #carbon #pricing #policies on the competitiveness of relevant CBAM industries. Recent carbon-intensity data for CBAM products indicate that the average EU producer is less carbon-intensive in the production of aluminum, cement, iron, and steel, than the average UK producer. This gives EU producers a carbon cost advantage in their own market when protected by the CBAM. However, under separate carbon-pricing systems and CBAM policies, this advantage can be offset in the UK market if the EU carbon price is 3% to 9% higher than the UK ETS price. This shows, that the CBAMs in their current design protect against carbon leakage in the respective #domestic #markets, but the divergence in carbon price policies between the two jurisdictions can, in specific cases, distort the carbon competition. Overall, aligning carbon pricing policies between the EU and the UK is more beneficial for carbon competition. #CarbonBorderAdjustmentMechanism (CBAM) 📄https://lnkd.in/dUE-PS7T

“China will expand its national carbon trading market to include the steel, aluminum, and cement industries at the end of the year, to push the polluting sectors to reduce emissions. …..While producers of steel, aluminum, and cement will soon face extra costs at home for emitting carbon, Chinese authorities hope lower emissions will help soften the blow from a new carbon tariff, known as CBAM, to be imposed by the European Union from 2026. The mandatory market currently covers about 2,200 power utilities but has been slow to compel polluters to change their behavior because of low carbon prices and taxes. Expanding the three-year-old carbon market paves the way for seven additional sectors to be included as Beijing aims to cover 70% of its total emissions by 2030.” #carbonmarkets #carbonassetclass #steel #cement #china #CBAM

EU's Carbon Border Adjustment Mechanism's, Goods Sector Reporting Guidelines: January-March 2024 Here are the latest reporting guidelines for the period of January-March 2024: Reporting Scope: Direct and indirect embedded emissions for all sectors including Cement, Fertilizers, Iron/Steel, Aluminium, Hydrogen, and Electricity. Default Values: Default values permitted until June 30, 2024. EU's Carbon Border Adjustment Mechanism Report Content: -Total quantity of goods imported during the preceding quarter -Total embedded direct and indirect emissions -The carbon price due in the country of origin for the embedded emissions #ESG #EUGreenDeal #GreenTransition #Finland #Europe #LCA

📢 Join this free of charge webinar on the EU’s Carbon Border Adjustment Mechanism (CBAM)! 🌍 On 27 November, the VBO FEB and FPS Environment will hold an informative webinar on the Carbon Border Adjustment Mechanism (CBAM), which requires certain importers to the EU to pay a carbon price. This year marks the start of the transition phase, where these importers must report their emissions  (from the iron and steel, cement, fertilizers, aluminum, electricity and hydrogen sectors) but are not yet subject to financial obligations. The webinar aims to give an update on the current status of the mechanism, now that the initial two reporting periods have passed, and to offer insights into its future outlook. 📅 When? 27 November 2024, from 10 a.m. to 12 p.m. Register now 🔗 https://lnkd.in/eX9Vc22Z   #CBAM #ClimateRegulations #SustainableBusiness #GreenTransition

Can #carbon pricing pave the way for cleaner steel production in #Malaysia? The Malaysian #steel industry, driven by foreign investments from China, faces a significant #emissions challenge due to the use of the coal-based Blast Furnace-Basic Oxygen Furnace (BF-BOF) technology. To curb emissions and encourage a shift towards #lowcarbon steel production, IDEAS | The Institute for Democracy and Economic Affairs proposes carbon pricing, through a carbon tax and cap-and-trade system, and the implementation of a Carbon Border Adjustment Mechanism (CBAM)-like carbon import tax. More on the IDEAS report findings and recommendations below. #EconomicGrowth #Consumption #Climate https://lnkd.in/dYzGn_mr

The EU will pilot CBAM in the period 2023 - 2025 with 5 types of products: iron and steel, cement, fertilizer, aluminum, and electric energy. During the pilot period, importers do not need to pay fees but must report the amount of emissions contained in their imported goods. In 2025, the European Commission will assess how CBAM is performing and may expand the scope of regulation to more products and services - including the value chain and possibly including “emissions”. indirect” (e.g. carbon emissions from using electricity to produce goods) - when officially applied in 2026 https://lnkd.in/eqw52qmY #export #carbondemission

The Carbon Border Adjustment Mechanism (CBAM) is a policy implemented by the European Union (EU) aimed at stopping the movement of carbon emissions to other countries and making the cost of carbon emissions consistent for goods imported versus those produced within the EU. CBAM will enter its initial phase on October 1, 2023, and will require EU importers to disclose the carbon emissions associated with their products. The official start of the phase will be on January 1, 2026, at which time importers will be obligated to purchase CBAM certificates to cover these emissions. The policy focuses on imports from countries outside the EU in industries such as steel, cement, fertilisers, aluminum, and hydrocarbons, promoting a worldwide decrease in carbon emissions. #CBAM #CarbonBorderAdjustment #EUClimatePolicy #CarbonEmissions #SustainableTrade #GreenEconomy #ClimateAction #Decarbonisation #EnvironmentalPolicy #CarbonFootprint #ImportRegulations #SustainableIndustry #Steel #Cement #Fertilizers #Aluminum #Hydrocarbons #GlobalSustainability #CleanTech #ClimateChange

UK approves 2027 launch of CBAM The United Kingdom's implementation of the Carbon Border Adjustment Mechanism (CBAM), officially confirmed on October 30th and set to launch in January 2027, marks a significant step in its climate change strategy. The United Kingdom's implementation of the Carbon Border Adjustment Mechanism (CBAM), officially confirmed on October 30th and set to launch in January 2027, marks a significant step in its climate change strategy. This mechanism will levy a carbon tax on imports of carbon-intensive products such as aluminum, cement, fertilizers, hydrogen, iron, and steel, aiming to incentivize domestic producers to adopt cleaner technologies and remain competitive globally. The application of the CBAM will be confined to specific imported products designated as "CBAM goods," identifiable through established commodity codes. Following extensive consultations, it has been recommended that imported scrap materials defined by these commodity codes be exempt from the CBAM framework.

A great example how EU CBAM is forcing other countries to change their unsustainable ways in a market friendly way :the biggest carbon emitters in cement, steel and aluminum will soon also be required to join emissions trading market in China. Of course only a reasonable carbon price(read:well thought through emission quota allocation mechanism) will lead to the desired changes, but no details known yet... something to watch and possibly good news for the planet...This may also be a catalyst for other Asian countries to do the same...