CARBON FOOTPRINT

CARBON FOOTPRINT

Greenhouse gases

ISO 14064-1: Design, development and management of Greenhouse Gas inventories for organizations, and for reporting on these inventories. It includes the requirements to determine the GHG emission and removal limits, quantify the organization’s emissions and removals, as well as identify the company’s specific activities or actions in order to improve the management of these gases.

We offer you a free, quick and simple test to carry out a preliminary calculation of the Carbon Footprint of your organization.

ISO 14064-2: Principles and requirements for determining baselines, and monitoring, quantifying and reporting project emissions. It focuses on Greenhouse Gas projects or project-based activities specifically designed to reduce GHG emissions or increase GHG removals. It provides a basis for GHG projects to be verified and validated.

ISO 14067: Establishes the principles, requirements and guidelines for the quantification and communication of the Carbon Footprint of a product. When reporting the results of a HCP study according to the Technical Specification, procedures are provided to support both transparency and credibility, as well as enable informed choices.

CBAM- CARBON BORDER ADJUSTMENT MECHANISM

The Carbon Border Adjustment Mechanism (CBAM) aims to replace existing mechanisms to address the risk of carbon leakage. It is a mechanism to put a fair price on carbon emitted during the production of carbon-intensive goods entering the EU and to encourage cleaner industrial production in non-EU countries.

The gradual introduction of the CBAM is aligned with the phasing out of the allocation of free allowances under the EU Emissions Trading System (ETS) to support the decarbonisation of EU industry.

Sectors subject to CBAM

The CBAM will initially apply to imports of certain selected goods whose production is carbon-intensive and faces the most significant risk of carbon leakage: cement, iron and steel, aluminum, fertilizers, electricity and hydrogen.

How CBAM will work

CBAM will apply to the actual declared carbon content embodied in goods imported into the EU, according to a formula that will reflect the effects of the EU ETS on the production of similar goods in the EU.

From the entry into force of the final phase of CBAM in 2026, EU importers will purchase CBAM certificates corresponding to the carbon price that would have been paid if the goods had been produced under EU carbon pricing rules. EU.

Transitional phase

Transitional phase: From October 1, 2023 to December 31, 2025.

The Carbon Border Adjustment Mechanism, better known as CBAM, Carbon Border Adjustment Mechanism, came into force on October 1, 2023 in its transitional phase. Importers will be asked to collect data for the fourth quarter of 2023, with the first report due by the end of January 2024.

Until the end of 2024, companies will have the option to report in three ways: Full reporting according to the new methodology (EU method), reporting based on an equivalent method, and reporting based on predetermined reference values ​​( only until July 2024). From 1 January 2025, only the EU method will be accepted and estimates (including default values) can only be used for complex goods if these estimates represent less than 20% of the total embodied emissions.

Full implementation phase

Once the permanent system comes into force on January 1, 2026, importers will have to declare each year the quantity of goods imported into the EU in the previous year and their embodied GHGs. They will then deliver the corresponding number of CBAM certificates.

A review of the operation of the CBAM during its transitional phase will be completed before the entry into force of the definitive system. At the same time, the product scope will be reviewed to assess the feasibility of including other goods produced in sectors covered by the EU ETS in the scope of the CBAM mechanism, such as certain downstream products and those identified as suitable candidates during the negotiations. The report will include a calendar that will establish its inclusion until 2030.

Reports

Customs authorities will inform customs declarants of their obligation to submit information during the transitional period. The customs declarant will be the importer or the indirect customs representative depending on who presents the customs declaration.

The report will include the information referred to in Article 35 of the Regulation: total quantity of each type of merchandise, the total actual emissions incorporated, the total indirect emissions, the carbon price owed in a country of origin for the emissions incorporated in imported goods, taking into account any refund or other form of compensation available.

The CBAM report will be submitted through the CBAM registry by the authorized filer. When a customs declaration has been submitted, the competent authority of the Member State will register the person in the CBAM register. The competent authority will also review the CBAM declaration and therefore verify that the applicant’s information is complete and complies with Regulation (EU) 2023/956 to grant the authorization.