European Union expects to carry out “the greenhouse air emission will be reduced to 55% -FIT FOR 55,” one of the most important mechanisms is the carbon border adjustment mechanism with the abbreviation of CBAM.

CBAM indicates that if the carbon content of the product to be exported is excessive to the import country’s regulation, the importer needs to purchase the carbon credit, and the product will be charged with CBT. In other words, the product will not be approved to enter the EU when the European union requests that the imported product bearing carbon-intensive; the importer must purchase the corresponding CBAM certificate based on the carbon emissions. On the other hand, If the product comes from a non-EU producer, they need to provide the related evidence to prove the product in Non-EU nations has paid a certain charge based on the carbon prices; the importer can waive the expense to purchase an EU CBAM certificate.

The spirit of CBAM is to reduce global carbon emissions in this way effectively. And also to prevent “Carbone Leakage.” It not only complies with the EU regulation but also becomes the global footprint model, which prompts some other countries to follow up. The company will suffer a huge influence even for those enterprises indirectly exporting to Europe afterward.

Carbon emission refers to the direct or indirect production of greenhouse gases, such as carbon dioxide, methane, and hydrofluorocarbons, during activities like production and operation.

Meanwhile, carbon footprint encompasses the entire life cycle of an activity or product, including material mining, production, assembly, transportation, waste and abandoned treatment, and recycling. It is not limited to emissions from production but also includes those from transportation, consumption, and every other aspect of the process.

The first step of carbon reduction is to check that the enterprise understands its source of carbon emission; then, it can work out a carbon reduction strategy. (CFV) Carbon footprint verification categorizes the basis of greenhouse gas emission into three main scopes - direct emission, indirect emission, and other indirect emissions.

Scope 1, Is the direct emission of the greenhouse gas
For example, the direct carbon emissions produced by factories and the use of methane and other gases in the manufacturing process.

Scope 2, The power’s indirect emission source
It primarily indicates the outsourcing of electricity, heat, or steam or the application of some other energy with indirect emission.

Scope 3, Is some other indirect emission source, which is the organization’s activity generating greenhouse gas emissions, for instance, the production and transportation
When purchasing the raw material, the employees’ commute and business traveling, the outsourcing sales, and the emission generated from the product lifecycle.