Reporting on the EU Carbon Border Adjustment Mechanism (CBAM) is Coming into Effect. Here’s how IsoMetrix Lumina Assists.
A key component of the European Union’s (EU) efforts to achieve its climate targets, the Carbon Border Adjustment Mechanism (CBAM) is a tariff on carbon-intensive products imported by the EU.
The primary goal of CBAM is to prevent ‘carbon leakage’, which occurs when companies in regions with stringent carbon pricing or emissions reduction policies relocate their production to regions with fewer, less strict, or no regulations in an attempt to reduce their carbon costs.
The CBAM tariff is initially being applied to products in various carbon-intensive sectors exposed to international trade such as aluminium, cement, iron, and steel, and may expand to cover more sectors in due course.
As part of the European Green Deal’s aim of making the European Union (EU) climate-neutral in 2050, CBAM takes effect in 2026, with reporting expected to apply from 1 October 2023 as part of a transition period.
Exporters outside the EU will need to demonstrate that their products meet specific emissions benchmarks or pay the CBAM levy, which in turn will require robust reporting and verification mechanisms to ensure accurate assessment of any emissions associated with the production of the imported goods.
IsoMetrix Lumina ESG management and reporting software can assist organizations in dealing with CBAM in several ways:
CBAM requires organizations to calculate and report the carbon content of their imported goods accurately. IsoMetrix Lumina can streamline this process with its built-in carbon calculator assisting to determine the carbon emissions associated with the production of these goods.
IsoMetrix Lumina software can help organizations manage their upstream and downstream emissions data effectively, ensuring that they have a comprehensive record of emissions associated with their products – crucial for compliance with CBAM reporting requirements.
IsoMetrix Lumina software can facilitate the verification and auditing of emissions data, helping organizations demonstrate compliance with the CBAM standards.
IsoMetrix Lumina software can assist in assessing the risk of products being subject to CBAM levies via evaluating the carbon intensity of products and identifying areas where emissions reductions can be achieved to minimize CBAM-related costs.
CBAM compliance requires organizations to generate and submit comprehensive reports to authorities. IsoMetrix Lumina can assist organizations to generate these reports efficiently and reduce the associated administrative burden
Get ready for the CBAM reporting requirements!
Transform your carbon footprint management and reporting with IsoMetrix Lumina, the most modern ESG platform from the most trusted name in EHS.