Best Presentation Award to CETIZION Verifica on topic of Carbon Border Adjustment Mechanism (CBAM) imposed by European Union

Our Mr. Gangaa C SHARMA, Managing Director & CEO, participated in recent 11th International Bauxite, Alumina & Aluminium Society (IBAAS) along with the Jawaharlal Nehru Aluminium Research Development & Design Centre (JNARDDC), IBAAS-JNARDDC 2023, held in Nagpur, India during December 4-6, 2023  and won the best presentation award in the CBAM_Sustainability category.

The European Union (EU) has announced the Carbon Border Adjustment Mechanism (CBAM). This mechanism aimed to tax the producers for the production emission rates for their products at the EU border. Carbon leakage occurs when industries transfer polluting production to other countries with less stringent climate policies, or when EU products are replaced by more carbon-intensive imports. The CBAM will initially apply to imports of certain goods and selected precursors whose production is carbon intensive and at most significant risk of carbon leakage. The Aluminium is one of sectors covered under CBAM. The other sectors are Cement, Iron and Steel, Fertilisers, Electricity and Hydrogen.

Once the permanent system enters into force on 1st January, 2026, importers will need to declare each year the quantity of goods imported into the EU in the preceding year and their embedded GHG. They will then surrender the corresponding number of CBAM certificates. The price of the certificates will be calculated depending on the weekly average auction price of EU ETS (Emissions Trading System) allowances expressed in €/tonne of CO2 emitted.