A new mechanism, namely "Carbon Border Adjustment Mechanism (CBAM)’ to reduce GHG emissions by 55% by 2030, which was adopted as a part of the European Green Deal and as European Union (EU) announced, The CBAM would enter into force on October 1, 2023, starting from items with high risk of carbon leakage & high carbon emissions, i.e., Iron &Steel, Cement, Fertilizers, Aluminum, Electricity & Hydrogen [1], then would be fully operated in January 2026.
Under the CBAM, the importers will be required to report on the GHG embedded Emission of their product, as well as paid a carbon price corresponding to the EU Emissions Trading System (EU ETS) allowances. However, Importers would have the opportunity to claim a reduction of the CBAM based on any carbon price paid in the country of production [2]. For that, the CBAM involve to Carbon compensation and purchasing carbon credits through the carbon credit trading platform, including the United Nations Carbon Offset Platform.
According to a survey of projects that can be purchased on the United Nations Carbon Offset Platform, found that all the projects issued Certified Emission Reductions (CERs). Additionally, the platform will provide project information, prices, and the amount of carbon credits available to the buyer. Based on current prices, the project with the highest price is an EE household project at 25 USD/ton CO2e. [3]
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