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𝗪𝗵𝗮𝘁 𝗺𝗲𝗮𝗻𝘀 𝘁𝗵𝗲 𝗖𝗮𝗿𝗯𝗼𝗻 𝗕𝗼𝗿𝗱𝗲𝗿 𝗔𝗱𝗷𝘂𝘀𝘁𝗺𝗲𝗻𝘁 𝗠𝗲𝗰𝗵𝗮𝗻𝗶𝘀𝗺 𝗳𝗼𝗿 𝗦𝗰𝗼𝗽𝗲 𝟯 𝗗𝗲𝗰𝗮𝗿𝗯𝗼𝗻𝗶𝘇𝗮𝘁𝗶𝗼𝗻? by THE CLIMATE CHOICE The #EU Carbon Border Adjustment Mechanism (#CBAM) significantly #influences the #transition towards a #climate-compatible #economy. Why? CBAM ensures that goods imported into #Europe align with its commitment to #carbonpricing. ➡️ 𝗔𝗱𝗱𝗿𝗲𝘀𝘀𝗶𝗻𝗴 𝗖𝗮𝗿𝗯𝗼𝗻 𝗟𝗲𝗮𝗸𝗮𝗴𝗲 & 𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲𝗻𝗲𝘀𝘀 𝗗𝗶𝘀𝘁𝗼𝗿𝘁𝗶𝗼𝗻 CBAM aims to prevent #carbonleakage, which occurs when companies relocate production to countries with less ambitious climate #policies to avoid carbon costs. ➡️ 𝗣𝗵𝗮𝘀𝗲𝗱 𝗜𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻 CBAM will be introduced in two #phases. In October 2023, a reporting phase came officially into application. The full #implementation is scheduled for 2026. ➡️ 𝗧𝗮𝗿𝗴𝗲𝘁𝗲𝗱 𝗣𝗿𝗼𝗱𝘂𝗰𝘁𝘀 CBAM will initially apply to a limited number of high-emission #products, including #cement, #fertilizers, #steel and #ferrousmetals, #aluminum, #hydrogen, and #electricity. ➡️ 𝗜𝗺𝗽𝗮𝗰𝘁 𝗼𝗻 𝘁𝗵𝗲 𝗘𝗻𝘁𝗶𝗿𝗲 𝗦𝘂𝗽𝗽𝗹𝘆 𝗖𝗵𝗮𝗶𝗻 Businesses will now have to undertake detailed carbon #accounting throughout their entire #supplychain. Companies not initially included in the CBAM scope may also experience the impact of #carboncosts being passed down the production chain. ➡️ 𝗘𝗻𝗰𝗼𝘂𝗿𝗮𝗴𝗶𝗻𝗴 𝗚𝗹𝗼𝗯𝗮𝗹 𝗔𝗱𝗼𝗽𝘁𝗶𝗼𝗻 CBAM not only sets new #standards within the #EU but also encourages Europe’s #trading #partners to implement similar measures. ➡️ 𝗕𝗮𝗹𝗮𝗻𝗰𝗶𝗻𝗴 𝗚𝗹𝗼𝗯𝗮𝗹 𝗧𝗿𝗮𝗱𝗲 & 𝗖𝗹𝗶𝗺𝗮𝘁𝗲 𝗚𝗼𝗮𝗹𝘀 CBAM contributes to the ongoing debate about finding a compromise between global #trade #governance and climate policies. It exemplifies the EU’s #commitment to aligning #economic interests with #environmental objectives. https://lnkd.in/dp9ScMqs.

The transition to a sustainable economy requires commitment and collaboration at a global level. The European Commission’s Carbon Border Adjustment Mechanism is a crucial step to ensure our environmental policies are effective and fair. This mechanism will help reduce carbon emissions while promoting the competitiveness of our industries. I invite everyone to read and reflect on this important initiative. #CBAM #Sustainability #GreenEconomy #CarbonNeutrality #Industry #Competitiveness #Environment

Is your Supply Chain ready for carbon pricing? I know, it’s a big question and though I don’t have THE answer, I would like to share some of my insights and thoughts on this topic. Perhaps others working in this space can share their views. Feel free to DM me for a more in-depth conversation. The European Union’s Green Deal initiative called Carbon Border Adjustment Mechanism (CBAM) is being rolled out. https://lnkd.in/eT-jRxWe. This will create a level playing field for companies producing within the EU and those importing into the EU. At the same time as the free ETS allowances are being phased out for EU producers, the EU increases the pricing on ‘imported embedded carbon’, creating a level playing field while at the same time pricing in a cost for carbon. It seems reasonable to assume that for products for which in the manufacturing process material amounts of carbon are being emitted, the prices will go up. It is important to note that though currently only 'simple' high carbon products such as rolls of steel, steel pipe and nuts and bolts are in scope, more and more 'complex' goods will become in-scope. E.g. pumps & values. Pro-active supply chains can however, work to reduce these cost increases. Supply risk during this transitioning period should also be managed, as well as the mandatory carbon reporting to the EU. Let me start by explaining how carbon reporting and supply chain risk are intertwined. Many suppliers outside of the EU have not (yet) developed carbon tracking processes for their manufacturing & transportation processes. The importer into the EU is responsible and accountable for the declarations but without supplier data this will be impossible. This may result in phasing out of some suppliers. A great opportunity for well-organized non-EU suppliers. As the UK is following the EU closely with its own carbon scheme, this trend will strengthen. Should the USA follow as well, which I personally expect to be driven by a ‘market protection perspective’ then this squeeze on the supplier base will be painful and costly. Secondly, there are many advisory and software firms with solutions to help with the data reporting. However, all they do (so far) is streamline the data solicitation process. While the challenge sits in educating manufacturers and transporters in how to track their carbon data to enable reporting in the first place. Organizations that pro-actively work with manufacturers that can either lock in current prices of raw materials or will have access to the lowest cost green(er) raw materials will be the winners in this transition. The latter is of course the objective of the EU Green Deal. #Greendeal #CBAM #Supplychain #Processdesign #Carbon

In line with the European Green Deal and Fit for 55, the transition to sustainability in the shipping sector is in full swing. ✨ With the introduction of regulations such as the Corporate Sustainability Reporting Directive (CSRD), the extension of the EU Emissions Trading System (EU ETS) to shipping, and the Carbon Border Adjustment Mechanism (CBAM), companies are being encouraged - and sometimes forced - to move in a new direction, where sustainability is not just a compliance requirement, but an integral part of strategic decisions. 👀 Curious to learn more about these legislative measures and their implications for you as an importer/exporter? Let me know in the comments if you'd like to receive this document! 📬 #greendeal #sustainableshipping #fitfor55 #csrd #euets #cbam #afir

CBAM Guide for Exporters: Key Questions Answered The EU's Carbon Border Adjustment Mechanism (CBAM) is a game-changer in global trade. It's designed to level the playing field, preventing companies from shifting carbon-intensive production overseas. If you're an exporter, it's time to understand the implications of CBAM and take action. We at https://lnkd.in/gK-7Nqb9 is a Team of CBAM specialist – let's address your most pressing questions: Q: What exactly is CBAM? A: CBAM is essentially a carbon tariff on imports into the EU. It targets specific sectors deemed carbon-intensive, including iron, steel, cement, fertilizers, aluminum, and electricity. If you export these goods to the EU, you'll soon be accountable for the greenhouse gas emissions associated with their production. Q: When does CBAM become a real financial concern? A: We're currently in a transitional phase (2023-2025) where reporting of embedded emissions is mandatory, but no direct payments are required yet. The real financial impact kicks in from 2026 when you'll need to purchase CBAM certificates to cover the carbon cost of your exported products. Q: How will CBAM certificates be priced? A: The price will reflect the average weekly carbon price within the EU Emissions Trading System (EU ETS). This means the more carbon-intensive your production process, the more expensive CBAM compliance will be. Q: What if I don't comply with CBAM? A: Failing to accurately report emissions and purchase the necessary CBAM certificates could lead to significant fines and potentially damage your business relationship with the EU market. Q: What actions should exporters take right now? A: Here's your essential CBAM checklist: Gather Emissions Data: Start meticulously tracking greenhouse gas emissions from your entire production process – both direct and indirect emissions. Explore Decarbonization Options: Investigate ways to reduce the carbon footprint of your products. This could involve switching to cleaner energy sources, optimizing processes, or incorporating more sustainable materials. Price Anticipation: Factor potential CBAM costs into your pricing models for the EU market to avoid nasty surprises later on. Engage Stakeholders: If you work with suppliers who contribute to your carbon footprint, discuss how you will share the burden of CBAM compliance. Stay Informed: CBAM regulations may evolve, so keep up-to-date with the latest developments. The Bottom Line CBAM is not going away. Exporters who proactively understand its impact and take steps to adjust their operations will be better positioned to maintain their competitiveness in the EU market. We also have created a free CBAM Calculator to give you very high level cost impact. You can access it here  https://lnkd.in/gSUyb936 #CBAM #CarbonTariff #SustainableTrade #ExportStrategy #EUTrade For any queries related to CBAM please reach out to nb@thinksmartin.com

The UK is set to implement its Carbon Border Adjustment Mechanism (CBAM) in #2027, aiming to equalize carbon costs for domestic and imported goods, thus bolstering its climate agenda. The CBAM addresses carbon leakage by aligning imported goods' carbon costs with domestic production. Stakeholder involvement, led by Lucia Suggitt and Katie Keegan, ensures a collaborative approach. Gareth Davies MP emphasizes the need to prevent carbon leakage to uphold global decarbonization efforts. However, challenges lie in designing fair carbon pricing strategies and calculating liabilities. The CBAM positions the UK as a global #climate leader, aiming to achieve ambitious climate targets while fostering sustainable trade. It's a significant step towards integrating environmental goals with trade policies, encouraging global #decarbonization and supporting domestic industries. The CBAM's meticulous design and stakeholder consultation suggest it will serve as a model for other nations in advancing towards a #greenerfuture. https://lnkd.in/eKxYVCjM Carbon Tracker | Trucost | ClearBlue Markets | Blue Sources | Carbon-Neutral Consulting | South Pole | First Climate | Gold Standard | Ecofys | The Carbon Trust | ERM | EcoAct | Sustainalytics | ClimateCare | Carbon & Clean Energy Solutions | Climeworks | Chevron Renewable Energy Group | Carbon Engineering | Ørsted

The European Union's Carbon Border Adjustment Mechanism (CBAM), introduced as a measure to prevent carbon leakage and promote cleaner industrial practices globally, has faced initial engagement challenges. The CBAM aims to level the playing field between EU producers, who are subject to carbon pricing, and their international counterparts in countries with less stringent emissions policies. By imposing a carbon cost on imports of certain carbon-intensive goods, the EU seeks to encourage worldwide adoption of greener production methods. However, initial engagement with the CBAM has encountered hurdles. Reports indicate that a portion of German and Swedish companies failed to meet initial reporting deadlines, signaling a concerning lack of awareness and comprehension among importers. Despite these setbacks, nearly 13,000 reports, primarily covering imports from China, have been submitted to the European Commission, reflecting a positive trend towards transparency and accountability in carbon emissions. This initial tepid response to the CBAM could provide valuable insights into potential challenges facing the shipping industry under the ETS. Like the CBAM, the ETS requires accurate emissions reporting and imposes costs on carbon emissions, aiming to reduce greenhouse gases. The difficulties encountered in CBAM compliance underscore the need for clear communication, simplified reporting processes, and robust support systems to facilitate industry participation in such environmental policies. For the shipping sector, this suggests a pressing need for enhanced awareness campaigns, streamlined reporting procedures, and comprehensive support from authorities to ensure effective engagement with the ETS. The early experiences with the CBAM highlight the critical role of proactive measures in ensuring the success of emissions reduction initiatives, both for shipping and across other industries subject to these evolving environmental regulations. #euets #etsforshipping #shipping #maritime #emissiontrading ⚓

The Council of the European Union approved the Critical Raw Material Acts thus gearing up the EU to meet the expected booming demand for #CRMs in the years and decades to come to support the green and digital transition (https://lnkd.in/engRsHEP). A key aspect of the ECRMA is to cater for strategic partnerships and projects designed to secure a diversified supply of CRM to the EU, with major consequences in terms of resilience and autonomy. The Institute for European Environmental Policy (IEEP) assessed the pros and cons of this new approach in our recent brief on trade and CRMs ⬇ a timely read if you ask me :) https://lnkd.in/eaCptK6p #criticalminerals #criticalrawmaterials #climate #transition #cooperation #trade

As the EU continues to lead the way in climate action, the Carbon Border Adjustment Mechanism (#CBAM) emerges as a key strategy to promote fair competition and global sustainability 💡. By applying carbon pricing to imported goods, CBAM ensures that non-EU suppliers uphold the same environmental standards as EU producers. This initiative not only helps reduce carbon leakage but also motivates global industries to adopt cleaner production practices. 🌍🌱 CBAM is a powerful reminder that environmental responsibility extends beyond borders—encouraging us to rethink how trade and climate policy intersect. The journey to a greener future is complex, but mechanisms like CBAM are vital steps toward global cooperation and sustainable progress. #CBAM #ClimateAction #Sustainability #EUClimatePolicy Suzanna ElMassah Zayed University https://lnkd.in/eGYR_4eF

🌍 "𝐓𝐡𝐞 𝐄𝐔'𝐬 𝐂𝐚𝐫𝐛𝐨𝐧 𝐁𝐨𝐫𝐝𝐞𝐫 𝐀𝐝𝐣𝐮𝐬𝐭𝐦𝐞𝐧𝐭 𝐌𝐞𝐜𝐡𝐚𝐧𝐢𝐬𝐦: 𝐀 𝐊𝐞𝐲 𝐒𝐭𝐞𝐩 𝐓𝐨𝐰𝐚𝐫𝐝𝐬 𝐂𝐥𝐢𝐦𝐚𝐭𝐞 𝐍𝐞𝐮𝐭𝐫𝐚𝐥𝐢𝐭𝐲" 🔑 As the world continues to grapple with the challenges of climate change, the European Union (EU) has taken a significant step towards achieving its ambitious goal of becoming the world's first climate-neutral continent by 2050. The EU's Carbon Border Adjustment Mechanism (CBAM) is a crucial component of this strategy, designed to address the risk of carbon leakage and promote a level playing field for EU industries. In this blog post, we delve into the intricacies of the CBAM, exploring how it works, its implications for businesses, and its potential impact on global trade. From its initial application to cement, iron, steel, aluminum, fertilizers, and electricity to its phased implementation, we examine the key aspects of this transformative policy tool. Please read the full blog post to learn more about the CBAM and its significance in the fight against climate change. #CarbonBorderAdjustmentMechanism #EUClimatePolicy #Sustainability #GlobalTrade #ClimateAction