The European Union has developed the world’s first <\/strong>carbon emission control mechanism at the border<\/strong><\/p>\n The Carbon Border Adjustment Mechanism (CBAM)<\/strong> is an of European Union environmental policy to balance the costs of carbon emissions from products imported into the EU with costs incurred by enterprises operating within the EU.<\/p>\n The CBAM mechanism will contribute to preventing carbon leakage outside the EU, and will also encourage producers from non-resident countries to use technologies that are more effective in reducing greenhouse gas emissions. For this reason, CBAM is expected to contribute effectively to reducing global greenhouse gas emissions.<\/p>\n From October 1, 2023, importers to the European Union will report CO2 emissions. The European Union developed the world’s first carbon border adjustment mechanism (Carbon Border Adjustment Mechanism, CBAM) and on April 18, 2023, the European Parliament approved it. It should be noted that since 2005, a mechanism for regulating carbon emissions has been operating in the EU – the Emissions Trading System (EU Emissions Trading System, EU ETS).<\/p>\n The CBAM system aims to prevent “carbon leakage” by subjecting certain groups to imports<\/p>\n products from third countries (not members of the EU and EFTA) of carbon emissions associated with at the CO2 price paid in accordance with the EU Emissions Trading System (ETS), when the same goods are produced in the EU;<\/p>\n Who will be affected by the introduction of CBAM in Ukraine?<\/p>\n CBAM will cover the following product categories (listed in Annex1 REGULATION (EU) 2023\/956):<\/p>\n The producer of goods subject to the carbon border adjustment of CBAM, upon its import into the EU, should pay for the CO2 emissions from their production by purchasing CBAM certificates for the price to be formed by the EU ETS greenhouse gas emission quota trading market.<\/p>\n From October 1, 2023 to December 31, 2025, there will be a transition period during which the importer only reports CO2 emissions and does not pay for them.<\/p>\n By January 31, 2024, the importer must submit the first quarterly CBAM report with the following data:<\/p>\n From December 31, 2024, the manufacturer will be able to apply for registration in the CBAM electronic register and register an authorized CBAM declarant (importer), who will be provided with information on verified CO2 emissions from the production of goods. The authorized CBAM declarant must be approved (authorized) by the competent authority in the country to which the import is carried out.<\/p>\n The main steps that business can take to prepare for the CBAM transition period are:<\/p>\n Step 1 It is necessary to conduct an initial assessment of greenhouse gases. Determine which of your products will be covered? Where do you get them from (origin)? What is the volume of your imports of these products? From October 1, 2023 to December 31, 2025, the CBAM transition period is in effect. This requires EU importers to start reporting the emissions embedded in the CBAM products they import. ATTENTION! By January 31, 2024, the importer must submit the first CBAM quarterly report.<\/p>\n Step 2<\/strong><\/p>\n There is a need to establish a process for collecting data on production-related emissions: who in the supply chain has this information? Who will contact the suppliers?<\/p>\n Step 3<\/strong><\/p>\n Set up CBAM reporting processes: add CBAM reporting to your organization’s business processes, designate a compliance officer for compliance with CBAM requirements. Please note that failure to comply with the requirements of the Regulation entails the imposition of fines followed by a ban on trade in the EU.<\/p>\n Step 4<\/strong><\/p>\n From December 31, 2024, the manufacturer will be able to apply for registration in the CBAM electronic register and register an authorized CBAM declarant (importer), who will be provided with information on verified CO2 emissions from the production of goods. The authorized CBAM declarant must be approved (authorized) by the competent authority in the country to which the import is carried out.<\/p>\n If you have any questions about CBAM<\/strong> and its impact on your business, don’t hesitate to contact us.<\/p>\n Specialists of the Company “Center LTD” help you with the CBAM impact assessment, the preparation of a quarterly report and the determination of the prices to be paid in the country of origin for the embedded emissions in imported.<\/p>\n Why is it important to calculate CO2 emissions?<\/strong><\/p>\n Calculation of CO2 emissions is an important component of exporters’ development strategy, as it allows:<\/p>\n How are CO2 emissions calculated using the CBAM mechanism?<\/strong><\/p>\n The CBAM mechanism is based on a simple algorithm that takes into account CO2 emissions as a result of production processes. This algorithm includes the following steps:<\/p>\n What does the abbreviation CBAM mean and what is its role in business?<\/strong><\/p>\n The CBAM<\/strong> (The Carbon Border Adjustment Mechanism<\/em>)<\/strong> or World Bank on Greenhouse Gases<\/strong> is a mechanism that helps companies and organizations reduce their emissions of greenhouse gases, particularly carbon dioxide (CO2).<\/strong> It helps to identify and manage emissions, which is of great importance for the protection of the environment.<\/p>\n What <\/strong>benefits business can get <\/strong>by using the CBAM mechanism?<\/strong><\/p>\n How does CBAM help reduce greenhouse gas emissions and support sustainable development?<\/strong><\/p>\n CBAM contributes to the reduction of greenhouse gas emissions<\/strong> by identifying the sources of emissions, measuring their volume, developing strategies to reduce emissions and monitoring the results. It is a key tool to support sustainable development and environmental protection.<\/p>\n","protected":false},"excerpt":{"rendered":" for Ukrainian exporters under the CBAM mechanism The European Union has developed the world’s first carbon emission control mechanism at the border The Carbon Border Adjustment [\u2026]<\/span><\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":[],"_links":{"self":[{"href":"https:\/\/center-ltd.com.ua\/en\/wp-json\/wp\/v2\/pages\/4755"}],"collection":[{"href":"https:\/\/center-ltd.com.ua\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/center-ltd.com.ua\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/center-ltd.com.ua\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/center-ltd.com.ua\/en\/wp-json\/wp\/v2\/comments?post=4755"}],"version-history":[{"count":2,"href":"https:\/\/center-ltd.com.ua\/en\/wp-json\/wp\/v2\/pages\/4755\/revisions"}],"predecessor-version":[{"id":4757,"href":"https:\/\/center-ltd.com.ua\/en\/wp-json\/wp\/v2\/pages\/4755\/revisions\/4757"}],"wp:attachment":[{"href":"https:\/\/center-ltd.com.ua\/en\/wp-json\/wp\/v2\/media?parent=4755"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Why is CBAM needed?<\/strong><\/h2>\n
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What would the implementation of the <\/strong>requirements<\/strong>\u00a0 of the CBAM Regulation look like?<\/strong><\/h2>\n
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Preparation the main steps of CBAM, what to do?<\/strong><\/h2>\n
How can we help?<\/strong><\/h2>\n
Questions\/Answers<\/strong><\/h2>\n
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