The Carbon Border Adjustment Mechanism (CBAM) is a crucial part of the European Union's (EU) efforts to reduce carbon emissions and create a sustainable future. In this blog post, we will delve into the detailed timeline of CBAM and discuss what businesses need to do during this process.

Transition Period October 1, 2023 - December 31, 2025 Importing companies are obligated to report their embedded emissions. During the transition period, verification of reports is not required. Details on the reporting format can be found at this link.

Phased Introduction of Financial Obligations 2026-2034 Throughout this period, CBAM financial obligations will be gradually implemented, and the free allocations in the EU Emission Trading System (EU ETS) will be phased out. By 2034, full cost accounting based on the carbon content of products will begin. Calculation of Financial Obligations: During the transition period, the number of CBAM certificates and financial obligations will be calculated considering the actual emission values of the plants producing the imported product and the free allocations in the EU ETS.

Calculation of Financial Obligations During the transition period, the number of CBAM certificates and financial obligations will be calculated considering the actual emission values of the plants producing the imported product and the free allocations in the EU ETS.

Authorized CBAM Obligant and Import/Customs Procedures Throughout the transition period, import and customs procedures will be conducted by an authorized CBAM declarant or directly through importing companies or customs consultants.

CBAM Roadmap for Businesses The process of complying with CBAM can be complex for businesses, but it is possible to develop a successful compliance strategy. Here are the main points of the roadmap that businesses should follow in the CBAM process:

• Start Monitoring Emissions: Businesses should initiate data collection processes necessary for monitoring carbon emissions.
• Prepare CBAM Reports: Begin organizing CBAM compliance reports and optimize your reporting process.
• Develop a Compliance Strategy: Formulate a strategic plan to ensure your business's compliance with CBAM.
• Investment and Innovation: Make investments and innovations to reduce carbon emissions and increase sustainability practices.
• Monitor CBAM Pricing: Keep a close eye on the CBAM pricing system and the prices of emission allowances.
• Sustainable Business Practices: Make your business more sustainable and promote green business practices.

CBAM represents a new era of carbon emission regulation for businesses. In this process, businesses have the opportunity to fulfill their environmental responsibilities and gain long-term competitive advantages. The transition from the initial phase to full operational period marks a significant transformation for businesses, and being prepared for this period is of critical importance.

What is CBAM? As the name suggests, CBAM is a regulatory mechanism developed to regulate and control carbon emissions. This mechanism is especially used to regulate the carbon emissions of imported products. The carbon footprint of the production process of imported products is assessed in the importing country and subjected to regulation.

The Role of CBAM in Combating Climate Change CBAM plays a critical role in the fight against climate change. Regulating carbon emissions is important for controlling the release of greenhouse gases into the atmosphere and reducing the effects of global warming. CBAM helps businesses and countries meet their commitments to reduce carbon emissions.

The EU's Goal of Preventing Carbon Leakage When the EU tightens environmental regulations, it addresses the concept of "carbon leakage" to prevent some businesses from moving to countries with lower regulations. CBAM regulates the carbon emissions of imported products to prevent such leakages and keeps businesses within the EU in a fair competitive environment.

The Impact of CBAM on Businesses and Imports CBAM has direct effects on businesses and importers. Businesses are required to commit to reducing the carbon emissions of their products and comply with CBAM. Additionally, importers must monitor the carbon emissions of the products they import and ensure that these products comply with the regulations.

Why is CBAM Important? CBAM is considered an important tool in the fight against climate change. It encourages businesses to adopt more sustainable production processes while helping to reduce negative environmental impacts. It also contributes to maintaining a fair competitive environment. The implementation of CBAM helps the EU achieve its environmental goals and represents a significant step in the fight against global climate change.

The importance of CBAM is increasing day by day, and the commitment of businesses to comply with these regulations is an important step on the path to a sustainable future.

The goal of CBAM is to promote environmental sustainability while also providing EU companies and companies in other countries with the opportunity to consider their environmental impacts. With these steps towards a greener and more sustainable future, we contribute to aligning trade with climate goals. At Carbon Gate, we have developed software that can perform all processes quickly and automatically with a Turkish language infrastructure. With our platform, preparing CBAM declarations is now very easy.

With our new digital platform, you can quickly adapt to the process by creating a pre-registration and prepare your company for sustainability.

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For more detailed information, you can contact us via email at cbam@carbongate.io.