EU Carbon Border Adjustment Mechanism (CBAM)
In response to the European Union's (EU, hereinafter referred to as "EU'')
Carbon Border Adjustment Mechanism (CBAM, hereinafter referred to as "CBAM''),
we provide high value-added and detailed services that meet the needs of our clients.
In response to the European Union's (EU, hereinafter referred to as "EU'') Carbon Border Adjustment Mechanism (CBAM, hereinafter referred to as "CBAM''), we provide high value-added and detailed services that meet the needs of our clients.
Companies are required to take initiatives towards sustainability, such as the United Nations Sustainable Development Goals (SDGs) and the United Nations Framework Convention on Climate Change.
The Paris Agreement was adopted in 2015 in order to resolve the global issue of climate change, and many countries have set the goal of becoming carbon neutral by 2050 and are making efforts. The European Commission has launched the “Fit for 55”. CBAM is one of the “Fit for 55” policies.
CBAM is a system that imposes a surcharge on the import of target products into the EU according to the amount of Greenhouse Gas (GHG , hereinafter referred to as “GHG”) emissions emitted during the manufacturing of the imported product, and is scheduled to be fully introduced in 2026. In the meantime, a reporting system for GHG emissions such as carbon dioxide has already begun in October 2023 at factories producing target products such as fertilizers, cement, steel and aluminum products. In particular, when calculating emissions, it is necessary to calculate GHG emissions (Scope 3) during manufacturing for raw materials used in manufacturing, and it is necessary to collect the necessary data up from the value chain. Also, note that the reporting system requires the use of actual measured values for emissions during manufacturing (Scope 1), stricter than the reporting system in Japan which allows estimated values calculation.
Furthermore, the European Commission has stated that it will consider expanding the scope of eligible products, and it will be necessary to closely monitor the status of the Commission’s deliberations regarding organic chemicals, automobiles, etc. Furthermore, after full-scale implementation in 2026, each production factory will be subject to verification. If an error is pointed out during probate, there is a risk of penalties being imposed, so it is important to take appropriate measures now.
For each client, we appoint a dedicated person who is knowledgeable in each field, and as a good advisor, we provide high-value-added and meticulous services that meet the client’s needs. For more information on CBAM services, please see below.
Hitoshi Tsuruta (Mr.)
Business Development & Plannimg Div.
Senior Advisor
+81.3.5219.8777