What Is the Carbon Border Adjustment Mechanism (CBAM)?
The Carbon Border Adjustment Mechanism (CBAM) is a new regulation introduced by the European Union (EU) to put a fair price on the carbon emissions emitted during the production of goods entering the EU. It aims to prevent "carbon leakage", a phenomenon where companies evade strict EU climate policies by relocating production to countries with laxer legislation, leading to increased imports of carbon-intensive products.
How Does the CBAM Work?
The CBAM operates as a system of certificates that declare a price on the carbon emissions of imported products. National authorities in each EU country authorize registrations in their CBAM system, including verification, review, and declaration processes. They also sell CBAM certificates to importers, with prices calculated based on the average weekly auction price of EU Emissions Trading System (ETS) allowances, expressed in €/tonne of CO₂ emitted.
This system ensures that the carbon price of imports is equivalent to the carbon price of domestic production, aligning with EU climate targets and United Nations rules.
Who Is Affected by the CBAM?
The CBAM primarily applies to imports of carbon-intensive materials, including:
- Cement
- Iron and steel
- Aluminium
- Fertilisers
- Electricity
- Hydrogen
When Did the Carbon Border Adjustment Mechanism (CBAM) Enter into Force?
From 1 October 2024, the CBAM regulation was applied on a transitional and gradual basis.
From 1 January 2026, the permanent system will enter into force. From that date, importers under the CBAM product scope will be required to:
- Receive authorizations as a CBAM declarant
- Purchase CBAM certificates to cover a certain percentage of the CO₂ emissions generated in the manufacture of the goods they import
- Declare the quantity of imported CBAM goods (including embedded CO₂ emissions) by 31 May of the year following the import
- Undergo an annual verification by a third-party entity (such as Applus+ Certification)
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Why Choose Applus+ Certification for CBAM Verification?
Applus+ Certification is accredited and has extensive experience in verifying emissions under the CBAM framework. Since 2006, we have been accredited verifiers for the Emissions Trading Scheme and a Designated Operational Entity (DOE) recognised by the United Nations for validating and verifying Clean Development Mechanism (CDM) projects and programs. Our dedicated team helps businesses navigate CBAM compliance smoothly and effectively, supporting you with:
- Verification of Implicit Emissions: We ensure accurate verification of the CO₂ emissions embedded in your imported goods, helping you meet all CBAM requirements.
- Verification of Carbon Footprints: Our services cover comprehensive carbon footprint assessments at both national and international levels, showcasing your commitment to sustainability.
- Advanced Carbon Tracking Tools: We offer access to our cutting-edge carbon footprint calculation software, enabling the tracking and monitoring of emissions across your entire supply chain.
Applus+ CarbonTrack – Digital tool helping you with CBAM calculation and Applus+ Certification
We offer you our cutting-edge digital solution when you are facing CBAM. With the tool, you get a more friendly data reporting system, in which the data reporting process smoothly follows your industrial processes.
All the CBAM results are calculated automatically according to the CBAM regulation, and all you have to do is to fill in the data according to the clear instructions step by step.
You can manage your CBAM results with help of our visualized result dashboard, so that you may easily find the emission hotspots and conduct targeting improvements.
The tool is also linked to Applus+ Certification. By one click, you may apply for verification of the CBAM result.
By partnering with Applus+ Certification you benefit from our expertise, state-of-the-art tools, and commitment to environmental responsibility, ensuring your business stays compliant while promoting sustainability.
Contact person：
Colin Zhou M: +86 15221968935
William Liu M: +86 182 210 36365
Leo Hua M: +86 13917 136917