Sandbag’s Post

⭐As the 𝗘𝗨 𝗖𝗕𝗔𝗠 𝗮𝗻𝗱 𝗨𝗞 𝗖𝗕𝗔𝗠 𝗮𝗿𝗲 𝗼𝗻 𝘁𝗵𝗲 𝗵𝗼𝗿𝗶𝘇𝗼𝗻... 🔊Here, I try to explain the, 𝗯𝗼𝘁𝗵 𝗖𝗕𝗔𝗠 𝗮𝗰𝗿𝗼𝘀𝘀 𝟭𝟬 𝗱𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝘁 𝗰𝗼𝗺𝗽𝗮𝗿𝗶𝘀𝗼𝗻 𝗺𝗮𝘁𝗿𝗶𝘅 such as scope, sector, products, embodied emissions, CBAM rate, timing, administration, etc.  🖋️Carbon Border Adjustment Mechanism (CBAM) is a 𝗰𝗮𝗿𝗯𝗼𝗻 𝘁𝗮𝗿𝗶𝗳𝗳/𝗲𝗰𝗼-𝘁𝗮𝗿𝗶𝗳𝗳 𝗺𝗲𝗰𝗵𝗮𝗻𝗶𝘀𝗺 on the import of certain goods levied by an importing jurisdiction/s characterized by the products with high carbon emissions and/or 𝗰𝗮𝗿𝗯𝗼𝗻-𝗶𝗻𝘁𝗲𝗻𝘀𝗶𝘃𝗲 𝗽𝗿𝗼𝗱𝘂𝗰𝘁𝘀, such as aluminium, cement, fertilizer, hydrogen, iron and steel, etc. _________________________________________________________________________________ ➕ Follow Karan Gajare, for posts about climate policy, climate risks, carbon management, ESG, sustainability regulations and frameworks, sustainable finance, water stewardship, etc. 📧 Drop me a DM to get connected with me, and collectively traverse the world of —corporate sustainability and developments around the climate change. 𝗦𝗶𝗴𝗻𝗶𝗻𝗴 𝗼𝗳𝗳 𝘄𝗶𝘁𝗵 𝗟𝗼𝘃𝗲 & 𝗖𝗮𝗿𝗲 💙 👋 ! #ClimateAction #ClimateChange #ClimateAnalytica #Sustainability #SustainabilityDisclosures #ClimatePolicy #ClimateAnalytica #Trade #EmbeddedEmissions #GHGEmissions #EmbeddedCarbon #CBAM #CarbonTariff #EUCBAM #UKCBAM #ClimateRisks

💡 Fixing a major loophole in CBAM    🌍The Carbon Border Adjustment Mechanism (CBAM) has the potential to be a game-changer in climate policy, by pricing carbon effectively in Europe while preventing carbon leakage.    However, it currently fails to assign equal carbon costs to imported aluminum products compared to those produced in Europe, as it exempts emissions from re-melted industrial scrap.    ⚠This allows re-melted aluminum to enter the EU without CBAM costs, opening the door to resource shuffling and undermining CBAM credibility and the competitiveness of the European aluminum industry.    Decision makers can close this loophole, by: 🔸 Assigning equal emissions for re-melted scraps   🔸 Including aluminum scrap in CBAM   🔸 Implementing verification and certification    📃 Together with Norsk Hydro, Alcoa and Sandbag, Bellona Europa addresses this issue in an op-ed article, published on Carbon Pulse.    🌍Bellona Europa is also part of Dg Taxud CBAM Informal Expert Group and will contribute to ensuring the design of a CBAM that works for the climate first.    Read the full article 🔎 https://lnkd.in/drPV9UwR    #CBAM #decarbonisation #climateaction #sustainableeconomy #climateactionnow #climatepolicy #EUPolicy 

📢The Integrity Council for the Voluntary Carbon Market (ICVCM) recently announced the first CCP-Approved methodologies, leading to high-integrity CCP-labelled carbon credits. This is a major milestone in our mission to create a transparent and accountable #VoluntaryCarbonMarket (VCM). 🍀“The Core Carbon Principles set a high bar for integrity and the CCP label is designed to help buyers identify carbon credits that meet our rigorous standards. We are delighted that the first credits can now be tagged with the CCP label – they are generated by projects that capture potent greenhouse gases which are essential to deliver an 'emergency brake' on warming in the near term.” said our Board Chair Annette Nazareth. Our science led ‘two-tick’ process is paving the way towards #VCM 2.0, a market that upholds credibility and integrity. CCP-labelled credits guarantee the removal or reduction of one tonne of emissions per credit, while also scaling up private sector finance for high-quality projects that reduce emissions and remove carbon from the atmosphere. ✅ 🔗Read the full press release here: https://lnkd.in/dGmz9umE

💥 This week, we’re busting five common industry myths about the #PFAS ban! 📣 As decision time gets closer, industry opposition to the EU’s proposed ban on PFAS substances is getting louder. Powerful PR teams are pumping out the message that the world will end without PFAS. Their propaganda has been published or broadcast so often that it’s often assumed to be common knowledge. But that doesn’t make it true. 🌍 First out is the claim that without PFAS, we cannot stop #climatechange. 💬 This statement from the American Chemistry Council, a US chemical industry trade association, is just one of many examples of this argument: “PFAS chemistries … are used in many of the technologies that will help take us to a clean energy future, such as solar panels, wind turbines, green hydrogen, and batteries for electric vehicles and energy storage. [They] are critical to accomplishing clean energy goals.” 🧐 However, looking at the technologies listed above one by one, we see that many commercial alternatives to PFAS are either available or in development. And where there is some doubt, the PFAS restriction proposal explicitly recommends derogations. The “green transition” is absolutely possible without PFAS! 👉🏼 Follow the link to find out exactly why this and other industry claims are false: https://lnkd.in/dgUAzcey

A big step towards proper governance for high integrity CCP labelled carbon credits. Curious to see these methodologies being applied in practice and verified.

Recently, the results of the IC-VCM's first assessments are expected as early as Q2 this year to be put on the stage of the VC market. According to Abatable's analysis, out of the 80 methodologies reviewed, only 6.4% of all historical issuances have a high likelihood of CCP eligibility. The market is calling for high-quality carbon credits. It is interesting to see how the market will go after the assessments. #VoluntaryCarbonMarket #VCM #CarbonMarkets #CCPs #CarbonCredits #EmissionsReduction #ClimateAction #ClimateChange #Sustainability

How do we fix a major loophole in #CBAM? In Carbon Pulse, Norsk Hydro, Alcoa, Sandbag and Bellona Europa describes how the EU’s landmark climate instrument risks undermining low carbon aluminum production and recycling in Europe. The flaw is a fixable technicality, but with huge potential impact. If the carbon costs does not follow the metal, we have the recipe for large scale source shifting and circumvention. The aluminum process scrap loophole can and must be closed if CBAM is to be effective. Read the whole piece below. https://lnkd.in/dW4zp4b6

A really interesting post this Monday from ChemSec-- I suspect the issue for most companies isn't the possibility of replacing PFAS chemicals with something safer but it is the cost of doing so. Whatever form the EU's regulatory approach to PFAS takes, it will make the EU and not the US, the world model for regulating PFAS. What do you all think? #pfas #chemistry #water #science #regulatoryaffairs #law #legal #environment #environmentallaw #pfasfree

What is CBAM ? What is Scope,Pricing,Calculation,Exemptions and Revenues of CBAM ? The CBAM is a policy tool introduced by the European Union in 2023 to address the risk of carbon leakage. Carbon leakage occurs when companies move their production to countries with less stringent climate policies, undermining the effectiveness of domestic climate actions. Each CBAM certificate corresponds to one tonne of emitted CO2 (carbon dioxide), N2O (nitrous oxide), or F-gases (perfluorinated hydrocarbons) released during the production process of the imported goods.  The key aspects of the CBAM are: 1. Scope: The CBAM initially covers imports of iron and steel, cement, fertilizers, aluminum, and electricity. The scope may be expanded to include other sectors over time. 2. Pricing: Importers of covered goods must buy CBAM certificates corresponding to the carbon content of their imports. The price of these certificates is based on the weekly average price of EU Emission Trading System (ETS) allowances. 3. Calculation: The carbon content of imports is calculated based on the actual emissions of the production process or using default values if the actual data is not available. 4. Exemptions: Imports from countries with a carbon pricing system at least as stringent as the EU ETS are exempted from the CBAM. Least Developed Countries are also initially exempted. 5. Revenue: The revenue generated from CBAM certificates is used to support climate action and the green transition both within the EU and internationally. The CBAM is designed to create a level playing field for EU industries by ensuring that imported goods face a similar carbon cost as goods produced within the EU. This incentivizes foreign producers to reduce their carbon footprint and promotes global climate action. #CBAM #sustaianbility #decarbonsiation #netzero2050 #energytransation #carbonpricing #GHGemissions #Climatechange

❗️📊 New analysis from Abatable: Only 6.4% of all carbon credits issued into the market confidently meet CCP eligibility criteria. Given the high level of anticipation surrounding The Integrity Council for the Voluntary Carbon Market (ICVCM)'s CCPs, before the announcement of the first approvals by IC-VCM later this month, Abatable has conducted a forecast into which methodologies have a high, medium and low likelihood of meeting CCP eligibility based on the category-level criteria set out in the IC-VCM’s Assessment Framework. ➡️ From the 80 methodologies reviewed, Abatable finds that only 6.4% of all historical issuances confidently meet CCP eligibility criteria. This translates to just 3.8% (32mln) of all available carbon credits in the market today. ➡️ We estimate that 37% of historical issuances have a ‘Medium likelihood’ of CCP eligibility. These credits are predominantly under methodologies that allow for flexible quantification approaches, whereby conservatism is encouraged but not strictly required. There is also uncertainty on how safeguards at the programme level will be considered at the category level assessment. To read the full analysis from Coco Chernel, which includes a breakdown of the proportion of market supply currently under assessment and a breakdown of likelihood of eligibility by project type, click here: https://lnkd.in/e9Ssvvd5 #VoluntaryCarbonMarket #VCM #CarbonMarkets #CCPs #CarbonCredits #EmissionsReduction #ClimateAction #ClimateChange #Sustainability