EU'S CARBON BORDER ADJUSTMENT MECHANISM (CBAM) – Important Update
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Dear Members,
As you are aware that the European Union has come up with Carbon Border Adjustment Mechanism (CBAM) regulation.
It is the tool to put a fair price on the carbon emitted during the production of carbon intensive goods that are entering the EU, and to encourage cleaner industrial production in non-EU countries.
The Carbon Border Adjustment Mechanism (CBAM) aims to achieve climate neutrality by 2050, preventing carbon leakage by regulating carbon-intensive imports. The European Commission introduced CBAM in respect of certain sectors with high carbon footprint, such as steel, cement, and chemicals.
EC states that this new mechanism would counteract this risk by putting a carbon price on imports of certain goods from outside the EU.
The European Union’s CBAM went into effect on October 1, 2023, and will require importers to pay a fee for the GHG emissions (Green House Gas) associated with the covered products they import.
At present following 4 Chemical products are falling under the purview of the EUs-CBAM regulation. (The Product list is likely to increase in future)
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28030010
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CARBON BLACK
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28342100
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POTASSIUM NITRATE
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28041000
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HYDROGEN
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2814
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AMMONIA, ANHYDROUS OR IN AQUEOUS SOLUTION
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To provide further clarity on the EU's Carbon Border Adjustment Mechanism (CBAM), CHEMEXCIL secretariat contacted the Europe Direct Contact Centre, a competent EU authority.
As per them members can access detailed information on this regulation through the official EU website: https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism_en
In view of this important topic CHEMEXCIL has conducted multiple webinars to keep members informed. The most recent webinar took place on 20th August, 2024. Enclosed herewith is the detailed presentation for your reference and study.
We encourage members to review this regulation and stay updated on this topic to ensure compliance.
Do not hesitate to write to us on amrita@chemexcil.in with copy to pw@chemexcil.in;dg@chemexcil.in
Thanks and Regards
Raghuveer Kini
Director General
CHEMEXCIL
Encl :Chemexcil-CBAM-PPT
2. EU ETS Amending Directive 2009
3.CBAM – List of goods and gasses covered