Our panel will help us better understand how CBAM will affect US companies and how to prepare effectively for this important policy change.
I. Introduction to CBAM and its Purpose
• Why is the EU implementing CBAM, how will it work and where are we in the process?
• Interaction of CBAM with the EU Emissions Trading System (ETS) and its compatibility with other ETS systems outside the EU
II. Scope and Coverage of CBAM
• Sectors covered by CBAM and reasons for their selection, and goods under the scope of CBAM
> Handling of 'second hand' and 'returned' goods
> Addressing carbon leakage of finished or semi-finished products
> Consideration of packaging in CBAM
III. Reporting Obligations and Procedures
• Customs and Reporting Procedures
• Responsibilities of importers and reporting entities
• Reporting deadlines and possible Penalties for non-compliance
• Challenges and solutions for reporting, including technical errors and data acquisition from suppliers
IV. Methodology for Calculating Embedded Emissions
• Determining embedded emissions for various goods
• Handling of alternative methods and verification of equivalence
V. Specific Case Studies and Industry Focus
VI. Transition Period & final implementation: What to expect
- Brokerage event
- 06007001 - Other energy production08004004 - Other pollution and recycling related
- -
- Online only
- New York City, United States
Practical information
- When
- -
- Host organisation
- European American Chamber of Commerce New York
- Website
- https://eaccny.com/events/?event_id=1309
Description
The European Union (EU) introduces a groundbreaking policy: the Carbon Border Adjustment Mechanism (CBAM).
CBAM, a strategic initiative designed to harmonize the EU’s ambitious climate objectives with international trade practices. By addressing the complexities of carbon leakage and establishing a level playing field for domestic and foreign producers, CBAM marks a significant step in the EU’s journey towards a sustainable future.
This mechanism aims to cut greenhouse gas (GHG) emissions by at least 55% by 2030, advancing towards climate neutrality by 2050. Aligned with the EU Emission Trading System (EU ETS), CBAM forms part of the “Fit for 55” package, specifically addressing the risks of carbon leakage – a phenomenon where production migrates outside the EU due to varied emission costs.
Previously, to mitigate carbon leakage, certain industries received free emission allowances under the EU ETS. However, CBAM introduces a paradigm shift. It aims to level the playing field by imposing comparable carbon costs on imports from non-EU countries, focusing on sectors at high risk of leakage, such as cement, iron, steel, aluminum, fertilizers, hydrogen, and electricity, including certain related products.
CBAM’s rollout involves two phases: a transitional period (October 2023 to December 2025) focusing on data reporting without financial implications, followed by a definitive period commencing January 2026. In the latter phase, embedded emissions will gradually come under CBAM obligations, with free allowances phased out by 2034. This approach mirrors the EU ETS, requiring EU operators to pay for emissions and importers to acquire CBAM certificates reflecting EU ETS prices. Compliant with World Trade Organization regulations, CBAM uniformly applies to all imports from outside the EU.