Carbon Border Adjustment Mechanism (CBAM)

CBAM is a regulatory framework introduced by theEuropean union (EU) to tackle climate change by addressing the carbon emissions associated with imported goods.
CBAM aims to create a level playing field for EU producers by imposing a carbon tax on imported carbon intensive goods.

How does CBAM work?

EU importers are required to apply for authorized CBAM declarant status. Importers can also appoint indirect custom representatives to apply for authorization. Each authorized CBAM declarant will be issued with a CBAM account number.
The CBAM Registry and the Common Central Platform are two key elements of the CBAM regulation. The CBAM Registry includes data on authorized CBAM declarants, operators and installations in non-EU countries. The Common Central Platform will be used for the sale and repurchase of CBAM certificates.

SECTOR/GOODS FOR CBAM COMPLAINCES-
carbon intensive goods refer to goods/products that emits high concentration of carbon or carbon equivalent emissions during their manufacturing or production processes.

Plan Of Action

For carbon intensive goods quarterly disclosure are mandated for their Embedded carbon Emissions.