What is CBAM
CBAM stands for Carbon Border Adjustment Mechanism. It’s a policy tool proposed by the European Union to prevent companies from relocating to areas with lower environmental standards to avoid carbon costs.
CBAM puts a fair price on the carbon emitted during the production of carbon intensive goods that are entering the EU, and to encourage cleaner industrial production in non-EU countries.
Are you affected?
Under CBAM, EU importers are obligated to acquire accurate carbon emissions data reflecting the factory setup (including installations and processes) and calculate data according to the calculation method established by the EU.
Starting January 2026, only approved CBAM declarants can import goods affected by CBAM rules. Initially, CBAM applies to Cement, Electricity, Fertilizers, Iron and Steel, Aluminium and Hydrogen. Your company must apply for this status. Once approved, you’ll need to regularly report the emissions from your imports. To calculate these, you must know the emissions released during production. Based on these emissions, importers need to purchase and report CBAM certificates.
Grace Consulting's CBAM managed service takes the weight of CBAM reporting off of importers' backs by managing the CBAM reporting process in a seamless manner ensuring reporting is done in compliance with EU regulations.
I'm an EU importer. What should I do?
- Confirm you have signed up and are an approved CBAM declarant.
- Clarify the exact emission data of all your non-EU suppliers and the sub-suppliers of their suppliers*.
- Calculate the total quantity of CBAM goods imported within the reporting period.
- Clarify the specific variables related to direct and indirect emissions.
- Gather the carbon price due in the country of origin for the embedded emissions.
- Submit your CBAM report to the local authority and buy certificates to compensate the carbon emission.
CBAM Consulting
Importers face substantial risks under CBAM. Documenting and validating supplier data, including inputs, calculations, and supporting documents, is crucial.
EU importers, need a solution to get actual emissions data after July 2024. As setting up an emissions monitoring can be a lengthy process, the dialogue with suppliers and manufacturers needs to be happen as soon as possible.
Be aware: audits may occur several years later. Maintaining proof of calculations and data retention a critical part of your strategy. Gathering and maintaining this information from all suppliers and sub-suppliers can be time-consuming and tedious.
Partner with Grace CBAM Consulting to mitigate your risk!
Our mission
Grace Consulting aims to be the go-to reference for EU importers seeking to mitigate risk and maintain compliance with CBAM in a cost-effective manner.
Contact
Grace Holding AG
9 Bahnhofstrasse
6460 Altdorf
Switzerland
info@graceconsulting.ch