New GHG reporting requirements for products imported into Europe
The European Union’s (EU) Carbon Border Adjustment Mechanism (CBAM) has been implemented to measure, monitor, and report greenhouse gas (GHG) emissions embedded in imported products. Therefore, foreign manufacturers of materials listed below will have to include the same price per ton of embedded carbon emission limits that are imposed on domestic manufacturers under the EU’s Emissions Trading System (ETS).
In the first phase of CBAM, the materials include cement, aluminum, iron and steel, electricity, fertilizers, and hydrogen.
Since the CBAM regulation entered into force in May 2023, the first reporting phase of the CBAM regulation began last Saturday, October 1, 2023.
Our partners will work with manufacturers to submit the first reports by January 31, 2024, for the 2023 fourth-quarter period. Later in January 1, 2026, the purchase of CBAM certificates will be possible.
To comply with CBAM, importers will register with customs authorities of EU member states and provide details about the type and quantity of goods and the embedded GHG emissions in them. Importers can purchase CBAM certificates corresponding to the declared emissions that are above the limits set in the rules for the product type. An independent accredited verifier must verify the declaration’s accuracy. By May 31 of each year, declarants are required to surrender CBAM certificates equivalent to their declared and verified embedded emissions.
Please contact our team to find local support in Europe, updates about the new programs and energy efficiency measures to reduce GHG emissions.
Industries Required to Report:
- Iron and Steel
Our Capabilities and Services:
- CBAM Registration
- Regulatory Insight
- Improvement Planning
- Interface with Regulatory Authorities
- Emission Data Collection and Organization
- Life-Cycle Analysis (LCA)
- Cost-Benefit Analysis