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Corporate Carbon Footprint Calculation and Reporting Software.
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Border Carbon Regulatory Mechanism (CCRM) Declaration Software.
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Sustainability / ESG Reporting and Management Software. (GRI)
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Emissions Management and Reporting Software for Cities and Municipalities (GPC)
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The First 6 Sectors on the CBAM Radar: Why Were They Chosen in the First Place?
CBAM's First Target: 6 Critical Sectors
As the European Union's Border Carbon Adjustment Mechanism (CBAM) came into effect, one of the most curious issues for the business world was which sectors would be the first to be affected by this regulation. in this initial process, called the "transition period", not the entire industry, but 6 strategically identified critical sectors were prioritized. So, which are these sectors and why are they at the top of the list?
Which Sectors are at the Beginning?
In the first phase of CBAM, the sectors with the highest risk of carbon leakage and the highest emission intensity were included. These 6 priority sectors are as follows:
Iron and Steel
Aluminum
Cement
Fertilizer
Electricity
Hydrogen (Added to the list later)
Why were these sectors chosen in particular?
The selection of these sectors as "pioneers" is no coincidence. There are both environmental and commercial reasons behind the choice:
High Energy and Emissions:
When the production processes of these sectors are analyzed, it is seen that they consume very high amounts of energy and emit very high amounts of emissions. These are the areas that require the most urgent intervention to reduce the carbon footprint.
Carbon Leakage Risk:
These sectors have the highest risk of shifting production outside the EU to avoid carbon costs (carbon leakage).
Trade Volume:
These are also the most internationally traded product groups. Due to their weight in global trade, it is from these sectors that regulation should start to have an impact.
The European Union's goal is to start with these sectors, which are the most polluting and trade intensive, and to expand the scope over time to include other product groups in the system.