What You Need To Know About CBAM

With over 20 years of leadership in environmental markets, Redshaw Advisors provides expert guidance on navigating the CBAM framework effectively The Carbon Border Adjustment Mechanism (CBAM) introduces new challenges for a range of companies, including liquid storage terminals, tank operators, and managers handling carbon-intensive goods such as oil, LNG, and other liquid commodities. While CBAM primarily targets industries like iron, steel, aluminium, and fertilisers, its ripple effects on storage facilities, ports, and supply chains cannot be overlooked. This evolution requires market players to adapt strategically to new market dynamics and regulatory challenges. Introduction To CBAM The EU CBAM aims to combat carbon leakage – whereby companies relocate production to countries with less stringent carbon regulations – and to safeguard EU industries from being undercut by cheaper, potentially more carbon-intensive imports, due to the high carbon costs imposed by the EU Emissions Trading System (EU ETS). CBAM also represents a cornerstone of the EU’s broader climate strategy, particularly its ‘Fit for 55’ initiative, a plan for a 55% reduction in Greenhouse Gas (GHG)...