About Kiwa
The EU Carbon Border Adjustment Mechanism (CBAM) is a tax and fee adjustment mechanism imposed by the EU on the carbon emissions of some imported goods, also known as a carbon border tax or carbon tariff.
Sectors:
• CBAM primarily covers the steel, cement, aluminum, fertilizer, power and hydrogen industries and targets direct emissions from production processes and indirect emissions (i.e., carbon emissions from the use of purchased electricity, steam, heat or cold in the production process) for the three broad categories of cement, power and fertilizer, as well as a small number of downstream products.
Products:
• Includes iron or steel products such as screws and bolts, and may be extended in the future to other product categories at risk of carbon leakage such as organic chemicals and polymers.
Declaration system:
• The operation of the CBAM mechanism is based on a declaration system with annual clearance. Authorized declarants importing CBAM-controlled goods register for authorization with the competent authorities in their home countries and submit the relevant information as required.
Carbon Footprint Accounting:
• Imported goods are required to account for their carbon footprint, which is usually done using the Carbon Footprinting for the Whole Life Cycle Accounting (CFLCA) methodology, but under the CBAM mechanism, the accounting boundary focuses mainly on the production process.
Carbon credits:
• Importers can apply for carbon credits for their goods, provided that the producer of the goods has adopted EU-recognized carbon footprint offsetting measures in the country of origin.
• (CBC) and Kiwa PI China, a subsidiary of the Dutch Kiwa Group, have signed a contract to jointly build a one-stop public service platform for international trade on the EU carbon tariff CBAM, with the aim of providing enterprises with more convenient and efficient carbon-related trade services. The platform aims to provide more convenient and efficient carbon-related trade services for enterprises and help them ride the wave of the global green and low-carbon transition.
• The establishment of the platform not only marks a solid step forward in promoting green transformation and sustainable development of the manufacturing industry in Wuxi, but also provides strong support and guarantee for Wuxi enterprises to deal with the EU's carbon-related trade policies.
• In the future, we look forward to more enterprises joining in the green transformation and contributing to the realization of the national strategy of “Carbon Peak and Carbon Neutral”.
