Carbon just got its own passport stamp ✈️—and the EU is charging customs fees at the border.
The EU Carbon Border Adjustment Mechanism (CBAM) began charging fees.💸 Without real data, the average number equals a very high tax. Politico mentions that now, there is an embedded charge, a fee, on goods like cement, iron, steel, aluminum and fertilizer imported from countries with weaker emissions standards than the EU's. This ensures imported goods face the same carbon costs as EU-made goods.
Why it matters: CBAM is designed to prevent carbon leakage. Without it, EU climate policies risk being undermined by cheaper, high-emission imports.
Exporters worldwide are recalculating costs. Singaporean firms exporting to Europe must now factor CBAM into pricing. As the tax is directed to embedded emissions on the supply chain.
It’s a tax but also a signal: decarbonize or lose competitiveness.🏗️
Companies now need to count their product carbon footprint (PCF)
real data = lower tax
reduction in emissions = reduction in tax -> resulting in competitive advantage⭐
CBAM is expected to expand to more industries in coming years.
For businesses, carbon intensity is now a trade metric, the EU’s bold step toward climate-neutral trade.
So what do you do? Shrink from the challenge? Or let the experts help you to comply by the regulations, turning risk into opportunity? Hit us up when you know you picked option 2😏
Check the full article at 👉🏻 https://www.politico.eu/article/eu-carbon-border-tax-goes-soft-dirty-chinese-imports-industry-warns/
Thanks for reading.
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