CBAM update - Webinar of the European Commission

Yesterday, the European Commission hosted an update webinar on CBAM yesterday. It is the second of its kind, but the first in English. language. Previously it was held in Spanish. The webinar was attended by According to the European Commission, over 5,000 participants joined the webinar. and participants joined in. This shows that the interest of companies companies and the accompanying advisory services remains high. The Commission can also envisage further editions of this webinar in other languages such as French, German or Italian. This depends on the language skills of the employees of the European Commission. Commission staff.

Aims of the CBAM

In terms of content, the speakers first gave an overview of the objectives to be achieved with the CBAM. Here, of course, the focus was on reduction of greenhouse gas emissions. As a measure from from the “fit for 55” legislative package, it is intended to help reduce emissions in the emissions in the EU by 55% in 2030 compared to the Kyoto Kyoto reference year 1990.

Status of implementation

The European Commission expressed its satisfaction with the number of 60,000 CBAM reports submitted per quarter. It turned out that 90% of the of imports are distributed among 10% of reporting companies. If the companies concerned companies do not submit reports, the first proceedings will now be are now being initiated, which may result in the first penalties. A content has not yet been reviewed to any great extent, as the companies has not yet taken place, as companies have until July 31 to amend the reports submitted. With regard to the reporting of emissions data 95% of the default values were used. Only the cement sector sector stood out with 40% of actual emissions data already reported. already reported. This could be due to very few, but very large suppliers in third third countries that have already carried out emissions monitoring. emissions monitoring. It was also pointed out once again that emissions monitoring emission monitoring according to standards other than those in the Regulation, for example with Ecoinvent, is not sufficient.

Extensions to the affected sectors

Things got exciting when the speakers went into more detail about the scope of the CBAM Regulation. On the one hand was explained once again why it had initially been extended from the cement, iron and and steel, aluminium, fertilizers, electricity and hydrogen. Here the share of the sectors in the total emissions of the European Emissions emissions trading, practical considerations and the risk of carbon leakage, i.e. the risk of greenhouse gas emissions leakage, are decisive. On the other hand, these criteria also determine the expansion of the sectors. The following were explicitly mentioned as possible extensions organic chemicals and refineries. For Germany, this would mean that in addition to automotive suppliers and mechanical engineering would be affected. A decision on this is expected to be made in the middle of next year.

Extensions of the affected goods

It has also been reported that an extension of the scope of scope of application in the sectors already covered is currently being reviewed. It is being examined whether the catalog of affected customs tariff numbers will be extended to include further finished products. The following were explicitly mentioned as examples cars and refrigerators were mentioned. A recommendation in this regard is to be be made at the end of this year.

Exemption regulation

It was also pointed out once again that the exception for shipments of goods with a low value of up to €150 is not directly in the CBAM regulation. Rather, reference is made to the corresponding provision in the EU Customs Duty Exemption Regulation. As this is currently undergoing a fundamental reform, this provision may - and probably will presumably - change this provision. The change in the Customs Code would then also lead to a change for CBAM.

The head of the German Emissions Trading Authority (DEHSt), Dr. Jürgen Landgrebe, had already announced in a webinar with German Trade and Invest announced that the DEHSt had developed a quantity-based lower limit and is lobbying the European Commission for its proposal. for its proposal. Such a lower limit is also supported by the chambers of industry and chambers of commerce.

Global development

The European Commission was very confident about the international international development of CO2 pricing. It referred here to the UK and Australia, which are on the way to introducing their own introducing their own CO2 border adjustment mechanisms.

Align your company correctly now

If you would like to strategically prepare your company for CBAM, please drop me a line at helge@kolum.earth. We will be happy to support you!

Best regards

Helge Wieggrefe