The so-called Carbon Border Adjustment Mechanism (CBAM) is seen as a key part of the EU’s Green Deal and the Paris Climate Agreement. And the good news is that European Parliament on wednesday endorsed the creation of a carbon border charge that would shield EU companies against cheaper imports from countries with weaker climate policies.
The target date for the start of the mechanism will be 2023 and it intends to ensure that imports from outside Europe will not have an unfair advantage if manufactured with a bigger carbon footprint. The CBAM is a great opportunity to boost the EU industry, employment and sovereignty. We should stop being naïve when imposing the same carbon price on non-European corporations to level the playing field of the 4.0 industrial revolution.
Carbon prices have reached world records, a new development after years of ineffectively low prices that failed to incentivize heavy industry to go neutral and start the race to zero emissions. The non-European products would need to buy voluntary carbon credits or EU Allowances (EUAs) from the EU’s own carbon emissions scheme it seems an elegant way to ensure a fair price for all carbon offsets, depending on their attributes.
We are happy because ClimateTrade provides the tools for CBAM by offering: transparency; traceability; trust-minimizing; identity management; privacy; immutability; decentralization; and reliable data storage & compliance in the EU, US, Latam or China wide cross-border services to account the impositive rules.
Our own customers call us their Global Climate Positive Partner and see ClimateTrade as their all-in-one solution where companies can find and match mitigation project developers and standards to incorporate additional attributes into their CBAM decentralized offsets.
We show in the platform voluntary carbon credits, EU ETS Allowance (EUAs), Renewable Energy Certificates (RECs) and coming soon very-low-sulfur fuel oil (VLSFO) or marine gas oil (MGO), Nature based Solutions (NbS), plastic credits, water credits and other types of assets as they are meant to become a reality and will be implemented and needed in the mandatory or voluntary mitigation and adaptation mechanisms.