Understanding The Carbon Border Adjustment Mechanism (CBAM Or MACF In French): Essential Information and Services For Compliance

As the global push towards reducing carbon emissions intensifies, the European Union has introduced the Carbon Border Adjustment Mechanism (CBAM) to ensure that imported goods comply with the same carbon pricing standards as those produced within the EU. This mechanism aims to prevent carbon leakage (Carbon leakage occurs when companies move production to countries with less stringent emissions regulations, thereby not reducing global emissions but merely shifting their location) and promote cleaner production processes worldwide. At Normec Verifavia, we are committed to helping our clients navigate this new regulatory landscape with a comprehensive suite of services, including training, verification, and gap analysis. 

Key Deadlines for CBAM Compliance

Understanding and meeting critical deadlines is crucial for maintaining compliance under the CBAM framework. Below are the significant dates that companies need to keep in mind: 

• January 1, 2023 – December 31, 2025: Transitional Period. During this phase, importers of certain goods will need to report the embedded emissions in their products without any financial adjustment. This period allows companies to adapt to the new reporting requirements and prepare for full implementation. 

• January 1, 2026: Full implementation of CBAM. Importers will be required to purchase CBAM certificates, reflecting the carbon price that would have been paid if the goods were produced under the EU’s carbon pricing rules. 

These deadlines are pivotal, and early preparation can mitigate risks associated with non-compliance, such as potential fines or disruptions in trade. 

Having an independent verifier becomes mandatory starting from January 1, 2026, when the full implementation of the CBAM begins. This marks the shift from merely reporting embedded emissions during the transitional period (January 1, 2023 – December 31, 2025) to the requirement that importers must verify their data and purchase CBAM certificates that reflect the carbon cost equivalent to EU standards. This ensures that all reported data on emissions are accurate and compliant with the established standards. 

Limits and Exemptions Applied to CBAM

CBAM includes specific limits and exemptions designed to balance environmental objectives with economic realities: 

• De Minimis Threshold: Shipments with a value of less than EUR 150 are exempt from CBAM requirements. This exemption is intended to alleviate administrative burdens for smaller businesses and for transactions involving low value shipments​. 

• Free Allowances: During the transitional period of the CBAM, certain sectors may be granted free allowances. These allowances are similar to those provided under the EU Emissions Trading System (ETS) and are meant to ease the transition for industries that are adjusting to the new regulations​. 

• Developing Country Exemption: Imports from the least developed countries may be exempt from CBAM. This exemption is designed to support economic development in these regions without imposing stringent environmental regulations that could hinder their progress​. Goods produced in the EU outermost regions, like La Réunion and Mayotte, are not subject to the CBAM because these regions are part of the EU customs territory. The CBAM Regulation exempts goods originating from specific countries and territories. These exemptions apply to countries and regions that have equivalent carbon pricing measures, such as those participating in the EU Emissions Trading System (ETS) or those that have linked their domestic ETS to the EU’s system. The countries and territories currently exempted from the CBAM include Iceland, Liechtenstein, Norway, Switzerland, and the special territories of Büsingen, Heligoland, Livigno, Ceuta, and Melilla​ 

Normec Verifavia’s Comprehensive CBAM Services

To support our clients through this transition, Normec Verifavia offers a range of tailored services designed to ensure full compliance with CBAM requirements: 

• Training Programs

Our specialized training programs are designed to equip your team with the knowledge and skills necessary to understand and implement CBAM regulations effectively. These programs cover: 

• Detailed insights into CBAM regulations and their implications 

• Step-by-step guidance on compliance requirements 

• Best practices for auditing reporting process and documentation>> To be finalized 

Our training sessions are conducted by experts with extensive experience in carbon management and regulatory compliance.

• Verification Services

Although Normec Verifavia is currently in the process of obtaining accreditation for CBAM verification, we are already offering pre-verification services to help you prepare. Our verification process includes: 

• Comprehensive assessment of reported emissions 

• Validation of data against CBAM standards 

• Pre-verification checks to ensure readiness for official verification 

Our goal is to provide you with the necessary services as we work towards full accreditation.

• Gap Analysis

Identifying and addressing gaps in your current carbon management practices is essential for seamless compliance with CBAM. Our gap analysis service involves: 

• Evaluating your existing carbon reporting and management systems 

• Identifying areas of non-compliance or improvement 

• Providing actionable recommendations to bridge any gaps 

Our gap analysis service ensures that your organization is well-prepared for the full implementation of CBAM, minimizing the risk of non-compliance. 

In addition, Normec Verifavia is offering a series of CBAM webinars. The next webinar will be held on the 10th of October 2024 at 10.00 on Linkedin live from Chillventa Conference with a focus on Auditing Requirements. Click here to Register for the LinkedIn LIVE 

Get Started with Normec Verifavia Today

Navigating the complexities of CBAM can be challenging, but we’re here to bring our support for your compliance. Our expert team is ready to assist you with tailored training, pre-verification, and gap analysis services.  

Contact us to learn more about how we can support your organization in achieving CBAM compliance and maintaining a competitive edge in the global market.