A guidance dated March 2023 has been published by the European Union within the scope of the Border Carbon Adjustment Mechanism (ACAM).

Important points from the guide:

· CBAM was designed not according to countries, but according to the carbon content of the products and to hold companies accountable.

·   Companies; should focus on the carbon content of their products, the free allowances granted in the EU ETS, and the carbon fees they pay in their home country.

· With CBAM, the carbon fees that companies subject to EU ETS have to pay are reflected on the imported products.

· This amount will be deducted from the SKDM fee if manufacturers outside the EU show the carbon fees they have paid in their own country.

· The cement, iron & steel, aluminum, fertilizer, electricity and hydrogen product group to be covered in the first phase covers 45% of the emissions in the EU ETS.

· It is planned to include Scope-3 emissions in CBAM calculations for some complex products.

· During the transition period starting from October 2023, companies are expected to report all their direct and indirect emissions.

· After January 2026, direct emissions and indirect emissions to be determined by the European Commission are required to be reported. These reports need to be verified by EU accredited organizations.

· Based on the reports to be published by the European Commission in 2025, it will be decided which products the SKDM will be extended to cover and whether indirect emissions will be included in the calculations.

You can access the guidance here.