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What is CBAM? “Which industries will be greatly affected by CBAM when exporting to the EU?”

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CBAM is a new policy of the European Union (EU) that imposes greenhouse gas limits on goods imported into the EU. This topic is attracting great attention from industries globally, especially industries with large export products to the EU market. Applying CBAM can have a significant impact on both businesses. and exporting countries as they face higher costs to comply with strict EU climate standards.

What is CBAM?

CBAM stands for Carbon Border Adjustment Mechanism. This is a mechanism proposed by the European Union (EU) to monitor and regulate products imported into the EU based on the carbon emissions their production generates. The purpose of CBAM is to ensure that imported products comply with the same climate standards as products produced domestically in the EU.

CBAM Rules

Rules of organization: Assessing the organization’s readiness to adopt new educational changes. This includes analyzing factors such as organizational policies, organizational structure, resources and capabilities, support from leadership and coordination between departments within the organization.

Rules of reception: Analyze and evaluate the level of individual reception to change. This involves measuring the extent to which individuals understand and accept new initiatives, including their feelings and commitment to these changes.

Rules of Use: Assessing how individuals use and adapt to new educational innovations. This includes measuring the level of implementation and application of new skills and methods that individuals have learned from educational changes.

The rule of consequences: Assessing the impact of educational changes on individual and organizational learning and career outcomes. This is the step to evaluate the impact of educational change on students’ learning ability, career and other results that the educational organization wants to achieve.

Role of CBAM

This mechanism is designed to ensure that products imported into the EU comply with the same environmental protection standards as products produced within the EU.

CBAM requires exporting countries to measure and report the carbon emissions created during product manufacturing. This helps determine how products affect climate change.

CBAM ensures that imported products comply with the same environmental protection standards as products produced within the EU, to prevent the entry of cheap but environmentally harmful products into the market. EU.

CBAM can integrate with the EU carbon trading system to create a fair competitive environment between producers in the EU and exporting countries. CBAM is designed to ensure that environmental protection measures do not reduce the fairness and efficiency of domestic and international markets. The CBAM mechanism is currently in the process of discussion and development for practical application in EU environmental policies.

Five industries strongly impacted by CBAM when exporting to the EU

Steel and aluminum industry

The steelmaking process requires a lot of energy to heat iron ore and coal or natural gas in furnaces. When iron ore is heated to make steel, the reaction produces CO2 gas, which contributes to the industry’s carbon footprint.

The electrolysis of bauxite ore to produce aluminum also consumes a large amount of electricity. In addition, aluminum butterfly processing and aluminum casting processes also use a lot of energy and can create carbon emissions.

Both industries consume large amounts of energy to maintain continuous production and related activities such as transportation, processing and processing of products.

Chemical manufacturing industry

Chemicals and chemical products often have complex production processes and require a lot of energy, thus having high carbon emissions.

The production of fertilizers such as ammonium nitrate, urea or organic fertilizers requires a lot of energy in the synthesis and processing of chemicals. Organic chemicals such as acetic acid, ethylene, phenol, plastic polymers (e.g. polystyrene) all have complex production processes and require large amounts of energy.

Products such as sodium hydroxide, sodium carbonate, and detergents also have complex and energy-intensive production processes. In addition, chemicals used in the processing industry such as sulfuric acid, nitric acid, and other oxidants often have energy-intensive production processes.

Cement manufacturing industry

The cement manufacturing industry is one of the industries that consumes large amounts of energy and has high carbon emissions. The cement production process includes two main stages

This process includes mining and processing limestone, quartz limestone and clay. This process can create carbon emissions from the machinery and energy required to mine and transport the raw materials.

Heating clinker – this is the most important step in the cement production process. Clinker is a gray powder produced by heating a mixture of materials such as limestone and clay at high temperatures in a cement kiln. This process consumes large amounts of energy and often results in high carbon emissions due to chemical reactions during heating.

Ceramic and glass manufacturing industry

Ceramic and glass products can require a lot of energy during fabrication and heating. The ceramic manufacturing process involves mixing raw materials such as clay, minerals and other chemical compounds. They are then fired at high temperatures to form ceramic products such as household utensils, decorations, and industrial ceramics. This heating process requires large amounts of energy to reach the required temperature and maintain it for a long time.

Glass production also requires large amounts of energy to melt raw materials such as glass sand, soda, and quartzite at high temperatures to create molten glass. The glass is then molded or shaped before cooling to create products such as bottles, appliances, or glass doors.

Iron and steel manufacturing industry

Besides the steel industry, cast iron production can also be affected due to the high energy properties of the heating process.

Iron ore processing involves extracting iron ore from mines and processing it into pure iron ore using methods such as heating and chemical treatment. The process of processing iron ore into pig iron and steel often requires high temperatures and uses large amounts of fuel for heating and smelting.

To produce final cast iron and steel products, heating and heat treatment processes are indispensable. This also requires the use of large amounts of fuel and energy.
These industries will have to comply with strict regulations and may be subject to border regulatory fees if they fail to meet environmental standards equivalent to the EU. This may affect the competitiveness of these products in the EU market.

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