Blended Climate Financing is an Ease Of Doing Business initiative under its ‘Tech for Circular Economy’ program for Govt of India; contributing to building annual milestones of climate funds and green projects financing disbursed every year accumulating till 2030 up to $2 Trillion ‘Climate Financing’ to meet $10 Trillion Green Economy ambition of India by 2070.

Carbon Border Adjustment Mechanism (CBAM)

"Carbon Accounting Software"

CBAM is a system that places a cost on the carbon emissions embodied in certain goods imported into the EU.

CleanCarbon’s CBAM accounting software offers comprehensive solutions for businesses to comply with the European Union’s Carbon Border Adjustment Mechanism (CBAM). This system places a cost on the carbon emissions of imported goods, leveling the playing field for EU businesses that are subject to stringent emissions regulations.

The software provides easy-to-use tools like the CBAM calculator, which helps companies estimate the carbon emissions and financial impact of importing goods into the EU. Its robust features, such as integration with business ERP systems, automated reporting, and continuous carbon analytics, simplify the complex carbon accounting process. This makes it easier for businesses to stay compliant with CBAM’s dynamic regulations while gaining data-driven insights to optimize their supply chains.

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How CBAM Works ?

  • Targeting Carbon-intensive Goods

    CBAM applies to sectors with significant carbon footprints, including steel, cement, aluminum, and electricity.

  • Estimating Emissions

    Importers must report and verify the carbon emissions generated during the production of imported goods.

  • CBAM Certificates

    Importers purchase CBAM certificates to cover the estimated carbon emissions of their imports. The cost of these certificates aligns with the EU's ETS carbon price, ensuring fair competition.

CleanCarbon Benefits

  • Reduced CBAM Costs

    Accurate emissions tracking and optimized processes can lower embedded carbon and, consequently, reduce CBAM fees.

  • Simplified Compliance

    CBAM-approved methods streamline compliance, decreasing administrative burdens and minimizing risks of penalties or errors.

  • Increased Transparency

    Centralized data management enhances data reliability, promoting better cooperation within the supply chain.

  • Improved Competitiveness

    Proactively demonstrating a lower carbon footprint gives businesses a competitive edge, particularly when negotiating with eco-conscious buyers.

Purpose of CBAM

The Carbon Border Adjustment Mechanism (CBAM) serves two key purposes

Reducing Carbon Leakage

CBAM addresses the issue of carbon leakage, which occurs when companies shift production to countries with less stringent environmental regulations to avoid paying carbon taxes within the EU, such as those under the Emissions Trading System (ETS). This relocation undermines the EU's emission reduction goals by simply moving pollution elsewhere. CBAM ensures that such practices are discouraged, promoting global emissions reductions.

Leveling the Playing Field

EU producers face strict regulations and are required to pay for their carbon emissions, which can make them less competitive against cheaper imports with larger carbon footprints. CBAM equalizes this by assigning a carbon price to imported goods, ensuring that both domestic and foreign products reflect the cost of their environmental impact.

From a climate financing perspective, CBAM plays a crucial role in encouraging decarbonization by pressuring businesses to adopt cleaner technologies, reducing their carbon footprint, and lowering compliance costs. Additionally, businesses can use CleanCarbon’s platform to streamline financial planning, ensuring that carbon-related expenses are accurately forecasted and mitigated.

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