As the deadline for the transition period imposed by the EU ETS of December 2025, It is necessary for Brazilian companies to adapt to the new rules, since many companies do not know that by having a cleaner energy matrix, the Brazilian product can now have a competitive advantage in relation to several players in the international market with CBAM.
However, this small advantage can be greatly increased if the company has, not just the right approach, but also the correct tools to generate CBAM reports and certificates, These are the tools that biO3 Meio Ambiente has, with just a few clicks, report your emissions, and generate documentation in the standard required by the European Union and also expose your certificates to potential European importers at a low cost or even zero cost, in some cases.
CBAM and the transition period
The EU has always been notable for being at the forefront of global concern about the greenhouse effect, CO² emissions and the increase in global temperature. However, after creating the legislation in force in Europe,, realized that the emissions embodied in products imported into the EU could put the efforts and commitments made, literally water below. In this context, the Border Carbon Adjustment Mechanism was designed, which forms, in English, its acronym CBAM.
In essence, the European Union tries to create in the rest of the world, with the weight of your market, initiatives similar to those built in Europe, seeking that countries that are interested in selling their products on European soil adopt Net Zero policies, Clean Energy Matrix, Carbon Offset Systems and other similar projects, promising that these countries will have competitive advantages over other nations that do not adopt pollution-free policies.
These practices will be monitored and formalized by CBAM mechanisms that will transform foreign companies' emission information into carbon credits called CBAM certificates that will be sold in the EU in a similar way to CELE. (greenhouse gas emission trading system in the Union) although with its own peculiarities.
In this way, it was agreed that in the period between 1 of october 2023 e 31 december 2025, would be known as the transition period, where the obligation of European importers would be restricted to the communication of information, in the form in which the law establishes and in the cases that are delimited by regulation. After this period the obligations increase, the mere communication of information is no longer possible, but filling out a certain CBAM report document, when delivered by the last day of the month following the quarter, being the last quarterly transition report to present for the last quarter of 2025, must be submitted by 31 of january 2026. This mandatory report from then on must have the format established by law.
The markets primarily affected and the opportunities
The regulation chose to cover, at first, industrial productions that have the highest volume of greenhouse gas emissions (GEE), being them:
- Ferro;
- Steel;
- Refineries;
- Cement;
- Aluminum;
- Hydrogen;
- Fertilizers;
The energy matrix also comes into this balance, where Brazil has a strategic advantage, since our matrix is quite clean compared to many countries.
However, it is quite clear that there is room for modernization of most processes, and that there is a long way to go before these processes can be considered Net Zero, but biO3 Meio Ambiente is ready to advise companies that want to further their path in this direction.
The CBAM Tool and biO3 Environment
biO3 Meio Ambiente has access to a cutting-edge tool, result of a partnership with a European company, which has built a service that promises to solve the formalities of CBAM declarations and, on top of that, demonstrate emissions to European importers in the format required by standards with just a few clicks for the exporting company.
The ease of reporting is frightening compared to the Excel spreadsheets currently used to demonstrate emissions. Furthermore, the biggest advantage is in the document generated, already at European standard and ready to be purchased by interested importers. And more, depending on the partnership model, This tool can be made available for free, one with an extremely reasonable value, to verify the exporter's interest.
Below we will see an interview between the two main Directors of the company and the tool market.
Find out more about CBAM in our BLOG,en.
and about CBAM on the page official.