CBAM
CBAM | Carbon Border Adjustment Mechanism
On August 17th, 2023, the European Commission adopted detailed reporting rules for its newly created Carbon Border Adjustment Mechanism (CBAM). The transitional phase of this new mechanism commenced in October 2023, introducing greenhouse gas reporting obligations for importers of certain carbon-intensive products. It is hoped that the CBAM will strengthen the effectiveness of the EU's Emissions Trading Scheme (ETS) and reduce carbon leakage.
As the European Union increases its policies and regulations in an effort to combat climate change, there is a risk of ‘carbon leakage' - whereby companies based in the EU move their carbon-intensive production or manufacturing abroad to countries with less stringent climate policies or without any form of carbon tax, or where EU products are simply replaced by imported products with higher carbon footprints. The EU Carbon Border Adjustment Mechanism (CBAM) has been introduced to combat this situation. It's a mechanism that “puts a fair price on the carbon emitted during the production of carbon-intensive goods that are entering the EU, and to encourage cleaner industrial production in non-EU countries.”
Essentially the mechanism's key objective is to level the playing field for European producers operating in the EU market who face a financial impact for their emissions under the EU ETS, while also encouraging industrial decarbonisation globally.
HEL Performance and Sustainability
HEL Performance has always placed the importance of ‘Planet First’ at the heart of its decision-making. We reuse and recycle all that we can, including our wooden hose reels and the swarf produced during the manufacture of our products. Our oil, which flows through our machines, is filtered and reused in-house, negating waste collections. Solar panels have been installed on the roofs of two of our buildings to help maximise power efficiency, and we include electric vehicles in our fleet of company cars.
However, we, as everyone, can do more. Which is why the CBAM is so important in minimising this ‘carbon leakage’.
CBAM Reporting
As an importer of our products into the EU, you will require the information available below to send on to your relevant authorities. We have had this initial report and will have all subsequent reports carried out by a CBAM Specialist and will report on this page every quarter.
Available Documentation
- CBAM – Spreadsheet – HEL Performance: This spreadsheet includes all of the information you require to enable you to report the CBAM of the parts you import from our company to your country. While it may seem onerous, this data sheet includes all that is required by you to fulfil your reporting obligations. During the transitional phase, with no monetary value for CBAM goods until 2026, this impact is estimated to equate to “£0.01 per tonne of imported goods”.
- CBAM – To Whom It May Concern: Letter for relevant authorities stating the ‘Summary of emissions by monitoring methodology and data quality’.
- CBAM – Covering Letter: Letter for relevant authorities without the ‘Summary of emissions by monitoring methodology and data quality’.
- CBAM – International Trade Consultancy Report: This report is supplementary and shows the independent consultant that created the CBAM Report for our company, including the methodology and figures used within the report.
Contact Information
For further information on this matter, please contact:
HEL Performance Products
Lower Trelake Business Park
Tedburn Road
Whitestone
Exeter
Devon
EX4 2HF
United Kingdom
Phone: +44-1392-811601
Fax: +44-1392-811681
Email: simon.lane@helperformance.com
