EU CBAM: INTRODUCTION
The Regulation (EU) 2023/956 of the European Parliament and of the Council of May 10th, 2023, published in the Official Journal of the European Union on May 16th, 2023, introduced a carbon border adjustment mechanism called CBAM (“Carbon Border Adjustment Mechanism”). The Regulation is an essential element of the European Green Deal, which includes the set of Fit for 55 proposals to reduce greenhouse gas emissions by at least 55 percent below 1990 levels by 2030 and to achieve climate neutrality by 2050.
The regulation provides two implementation phases:
– the “transition” phase, which started with the effective date of the Regulation (October 1st, 2023), will end on December 31st, 2025. There will be no financial adjustment during this period, but importers of the goods included in the Regulation will only have to provide information on the quantities of incoming products subject to the CBAM and their embedded emissions;
– the “definitive” phase, from the January 1st 2026, when the mechanism will come into full force.
During the transition period the Regulation will be applied to a small number of goods, whose production is carbon-intensive (cement, steel products, aluminum, fertilizer, electricity and hydrogen): the objective prerequisite is the verification of the customs code (CN code) of importation of the goods.
At this stage, the importer or indirect representative will be required to collect data on a quarterly basis and submit it to the Commission through the CBAM Transitional Registry.
CONSULTING SERVICES
KICKSTER offers consulting services that are scalable and modulable to the client’s specific needs, which can be encompassed in several areas, including:
- capacity building
- impact analysis
- compliance
- engagement
- due diligence.
TO WHOM IT ADDRESSED?
The service is suitable for all those companies which are importing products from non-EU countries included in the CBAM Regulation (cement, aluminum, fertilizer/fertilizer, power generation, iron and steel, aluminum and hydrogen*).
*Verification of import flows and CN codes is conducted as a free pre-analysis activity.
ACTIVITIES
Activities provided by KICKSTER include both strategic and compliance services including:
- CBAM impact analysis with respect to business activities
- risk assessment and evaluation of alternative flows
- inclusion of “CBAM criteria” in procurement procedures
- calculation of imported goods’ embedded emissions
- preparation of quarterly CBAM reports
- training with respect to current and future obligations under CBAM regulations
- training on the expected performance of CBAM certificates.
KICKSTER, moreover, has identified specific services to ensure that Importing Companies have the necessary data provided by suppliers for the compilation of CBAM Quarterly Reports for imports of goods from non-EU countries made from July 1st, 2024 until the end of the transition period. Specifically, the activities cover:
- specific training and guidance in the compilation of the XLS template file for the transmission of data of so-called “embedded emissions”
- support in the engagement activities of its suppliers
- due diligence of XLS template files shared by suppliers (based on the criteria established by EU Regulation No. 956/2023 and EU Implementing Regulation No. 1773/2023) to verify the consistency and correctness of the information rendered.
PROJECTS AND EXPERIENCES
Webinar:
- Fit for 55 and CBAM
- the impacts of CBAM for European companies
- the impacts of CBAM for Turkish exporters
- the impacts of the CBAM for Chinese exporters
- EU CBAM – Background, compliance and future developments (in collaboration with ASSOFOND, SpediFORM and Spediporto, Confindustria Genova, Confindustria Emilia and Confindustria Cuneo)
Training for:
- Ministry of Environment (Turkey)
- Ministry of Economic Development (Turkey)
- Trade association [[acciaio]] (China)
- Confindustria Genova associates
- Confindustria Cuneo Associates
IT/EU consulting activities sectors:
- steel, cement, aluminum
Non-EU product consulting activities:
- steel (Turkey, China)
- chemical products (Turkey)
- cement (Algeria)
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