Carbon Border Adjustment Mechanism
What is CBAM Certification?
The Carbon Border Adjustment Mechanism (CBAM) is a proposed policy by the EU aimed at addressing carbon leakage and ensuring a level playing field for industries operating under the EU Emissions Trading System (EU ETS). CBAM certification serves as evidence that businesses comply with the CBAM requirements, including the calculation and reporting of carbon emissions associated with imported goods include such as carbon-intensive sectors such as aluminum, cement, iron and steel, fertilizers, hydrogen and electricity are covered by CBAM.
Need for CBAM Certification:
CBAM certification is necessary for businesses engaged in international trade, especially those importing goods into the EU. It demonstrates a commitment to sustainability and compliance with environmental regulations.
Benefits of CBAM Certification?
CBAM certification offers several advantages for businesses engaged in international trade. These benefits include:
Market Access
CBAM certification allows businesses to access the EU market, which is increasingly focused on sustainability and carbon reduction.
Competitive Advantage
Certified businesses can differentiate themselves by showcasing their commitment to reducing carbon emissions.
Compliance with Regulations
CBAM certification ensures compliance with the specific requirements set by the EU to mitigate carbon leakage and maintain fair competition.
Enhanced Market Access
CBAM certification allows businesses to access the EU market, ensuring continued trade relationships with EU member states.
Sustainability Leadership
Certification demonstrates a commitment to sustainability and positions businesses as leaders in reducing carbon emissions.
Competitive Edge
CBAM certification can provide a competitive advantage by differentiating certified businesses from their competitors.
Who can get CBAM Certification?
Manufactures and importer of cement, iron and steel, aluminium, fertilisers, electricity and hydrogen.
Manufactures
Importers
Documents Required for CBAM Certification?
- System Manual
- System Procedure
- Policy
- Objectives
- Mission & Vision
- Standard Operating Procedure (SOP)
- Checklist
- Forms
- Formats
- Records
The extent of Documented Information differs as per:
- Organization’s size
- Activities performed by the organization
- Processes undertaken by the Organization
- Products and services offered by the organization
- The complexity of processes undertaken
- Competence of persons involved
Role of Shamkris and Process of CBAM Certification
Shamkris adopts a results-oriented approach to effective system implementation in the organization. A simple and practical method of system implementation helps organizations increase business efficiency and sustainability. Shamkris supports 100% documentation to obtain a certificate of success in addition to enhanced performance.
The implementation process is described below:
Time Frame
Task
Process
Day 1
GAP Analysis
Certification Body
Selection
Cost Estimates
- Finding the GAP between existing system related to CBAM requirements
- Selecting the appropriate certification Body
- Based on the scope of your business & certification Body you choose
Week 1
Developing Documents
- Management System Manual, Management System Procedures, Policy, Objectives, Forms etc.
- Review of Standard Operating Procedures (SOP)
Week 4
Implementing Management System
- CBAM Awareness training for the top management and staff
- Implementing a well-documented management system throughout the organization
Week 8
Internal Audit
MRM
CAPA
- Internal audits identifying nonconformities related to CBAM requirements
- Management Review Meetings
- Corrective and Preventive Action plan for nonconformities
Week 10
Certtification Body
Audit
N-C Closing
- Shamkris acts on your behalf and assists you in the third-party audit
- Closing of any nonconformities identified by the certification Body
Week 12
Certification Body
- CBAM certificates issued
- Surveillance Audits yearly
Year on Year
Yearly Compliance
- Support of Yearly documentation for audit
FAQ
Carbon Border Adjustment Mechanism
carbon-intensive sectors such as aluminum, cement, iron and steel, fertilizers, hydrogen and electricity are covered by CBAM.
CBAM certification is a process through which businesses can obtain certification to demonstrate their compliance with the requirements of the Carbon Border Adjustment Mechanism (CBAM). It involves calculating and reporting the carbon emissions associated with imported goods and ensuring adherence to the CBAM regulations.
Businesses engaged in international trade, particularly those importing goods into the European Union (EU), may need to obtain CBAM certification to ensure compliance with EU regulations and access the EU market.
Importers can calculate carbon emissions by collecting data on greenhouse gas emissions throughout the production process of the imported goods. This includes direct emissions and emissions from electricity consumption. Accurate data collection and emissions calculation are essential for CBAM certification.
Challenges of CBAM certification include the accuracy and reliability of emissions data, administrative burdens associated with documentation and reporting, and potential costs related to emissions calculations and engaging with third-party verifiers.
For more information about CBAM certification, it is advisable to consult official sources such as the European Commission or other relevant authorities responsible for implementing CBAM. These sources will provide detailed guidelines, requirements, and updates on CBAM certification as the policy progresses.