In recent years, there has been much discussion about the Carbon Border Adjustment Mechanism (CBAM). This is a new regulation introduced within the European Union aimed at creating a fair pricing system for goods whose production results in a high emission of greenhouse gases, applying to both European and foreign companies. This tool was created to counteract the phenomenon of "carbon leakage", which refers to the relocation of production to countries with less stringent environmental regulations, thus jeopardizing the climate objectives set by the European Union.
The CBAM applies to six main categories of goods with high greenhouse gas emissions:
Iron/Steel
Aluminum
Cement
Fertilizers
Electricity
Hydrogen
Due to this regulation, importing companies must comply with various obligations, including the collection and reporting of detailed data on embedded emissions, as well as preparing for financial obligations associated with carbon pricing.
With the CBAM, companies importing goods into the EU will therefore have to purchase certificates to cover the embedded carbon emissions in the products, aligning with the EU Emissions Trading System (EU ETS). In this way, it is intended to ensure that the import of goods produced abroad, in a more environmentally impactful manner, will no longer be economically advantageous in the years to come.
The Phases of the CBAM:
12/2019Announcement of the European Green Deal
Goal: Make the EU the First Climate-Neutral Continent by 205009/2021Presentation of the Proposal to the European Parliament and the Council of the EU
05/2023Adoption of Regulation (EU) 2023/956 Establishing the CBAM
01/10/2023 - 31/12/2025Transitional Phase of the CBAM
Obligation to monitor and report quarterly the embedded emissions in products.07/2024Obligation to use primary data on embedded emissions, no longer estimated values.
31/01/2025Deadline for Submitting the so-called CBAM Report
Related to import activities of steel products (and not only).01/01/2026Operational Phase of the CBAM
Obligation to purchase CBAM certificates to offset emissions from imported products.31/05/2027Deadline for the First CBAM Declaration
Deadline by which, according to the Regulation, the first CBAM declaration should be submitted, relating to goods imported in the 2026 calendar year.
The introduction of the CBAM poses new challenges, particularly for the metalworking sector:
- Additional Costs: The purchase of CBAM certificates will increase the costs of imports from non-EU countries.
- Reporting Obligations: During the transitional phase (from October 1, 2023 to December 31, 2025), importers must monitor and report quarterly the embedded emissions in products.
- Bureaucratic Complexity: Collecting detailed data on emissions will require more administrative resources.
- Impact on Competitiveness: The additional costs and burdens will make importing from countries with less stringent environmental regulations less advantageous.
Relying on European manufacturers such as Atlantic Man. offers tangible benefits to overcome these challenges:
1
Guaranteed Compliance with EU Regulations
By purchasing from Atlantic Man., you eliminate the need to buy CBAM certificates and manage the associated administrative burdens. This simplifies business management and ensures compliance with European regulations.
2
Reduction of Operating Costs
You avoid additional costs related to the CBAM, optimizing your cost structure and maintaining competitiveness in the market.
3
Supply Chain Stability
With Atlantic Man., you benefit from a reliable supply chain, avoiding risks of:
- Price fluctuations
- Customs duties
- Logistic delays
4
Commitment to Sustainability
Collaborating with a European manufacturer that is attentive to emissions not only enhances the company image but also meets the growing market expectations for environmental sustainability.
Atlantic Man. is certified ISO 9001 for quality management and ISO 14001 for environmental management. These certifications attest to our ongoing commitment to operational excellence and environmental protection.
Face the Future with Atlantic Man.
By choosing Atlantic Man., you invest in:
- Innovation and sustainability
- Efficiency and savings
- A reliable partnership
Contact Us to Optimize Your Supply Chain!
Don't let new regulations penalize your business. Contact us now to find out how our products can help you overcome the challenges of CBAM, making your business more sustainable and competitive. Prepare for the future and shift your supply to Atlantic Man. to ensure an efficient and compliant supply chain.
