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The EU's Carbon Border Adjustment Mechanism (CBAM): Addressing Carbon-Intensive Goods Imported to the EU

By
JAS Sustainability Team
September 25, 2023
The EU's Carbon Border Adjustment Mechanism (CBAM) is a regulatory framework introduced to address carbon leakage by imposing reporting requirements on importers of carbon-intensive goods, promoting transparency, incentivizing lower-emission choices, and leveling the playing field between domestically produced and imported goods.
The EU's Carbon Border Adjustment Mechanism (CBAM) is a regulatory framework introduced to address carbon leakage by imposing reporting requirements on importers of carbon-intensive goods, promoting transparency, incentivizing lower-emission choices, and leveling the playing field between domestically produced and imported goods.

As the European Union (EU) heightens its climate ambitions, there are increasing regulations related to "carbon leakage." This phenomenon occurs when EU-based companies shift carbon-intensive production to countries with less strict climate policies, potentially increasing emissions. To address this, the EU has introduced the Carbon Border Adjustment Mechanism (CBAM), an environmental regulation designed to establish a fair price for carbon emissions associated with the production of carbon-intensive goods entering the EU. Its purpose extends to encouraging cleaner industrial practices in non-EU countries. 

Goods Covered in the Initial Phase: 

The CBAM's scope encompasses products like cement, iron and steel, aluminum, fertilizers, electricity, and hydrogen in the transitional phase. Moreover, there are plans to evaluate the possibility of expanding the range of covered products by 2030, potentially including additional sectors. 

Impacts: 

  • Importers must carefully track and report emissions data for their imported goods. The European Commission is developing IT tools to help importers report and manage this data. 
  • Non-compliance with reporting requirements may result in financial penalties. 
  • The regulation introduces an additional layer of complexity in the import process. 

Timeline: 

As the CBAM unfolds between 2023 and 2035, it will have significant implications for industries, global competitiveness, and the fight against climate change. Here are some key dates to keep in mind: 

  • October 1, 2023: The CBAM enters its transitional phase. Importers of carbon-intensive goods begin reporting embedded greenhouse gas (GHG) emissions. 
  • January 31, 2024: The first reporting period for importers concludes. Flexibility in reporting methodologies is allowed. 
  • January 1, 2025: Reporting using only the EU method becomes mandatory. 

Benefits: 

  • Importers disclosing emissions data enhances transparency about the carbon impact of goods. 
  • The regulation incentivizes importers to choose lower-emission products, driving sustainable choices. 
  • Imported goods are subject to emissions reporting similar to domestically produced goods, leveling the playing field. 
  • The regulation raises awareness about carbon emissions associated with international trade. 

How Can JAS Support You? 

  • EU Import Customs Clearance: Our team of customs experts consult you and assist you in expediting the customs clearance process and the complexity of tariff codes, duties, taxes, and international trade regulations.* 
  • EU Regulation Monitoring: We keep you informed about CBAM updates and evolving regulations, ensuring you remain compliant and adaptable to changes. 

*The importer is at all times responsible for providing all documentation related to customs clearance, including correct shipment/tariff and emission-related data. 

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Jenna Naylor

Meet Jenna Naylor, a luminary at JAS Charleston, whose journey from a customs entry writer to an award-winning business development manager represents the boundless opportunities for growth within JAS. 

Jenna's path into logistics was more serendipitous than planned. Initially set on a career in journalism, envisioning herself as a frontline reporter or news anchor, she pursued this track through her college studies. However, a pivotal moment a month before graduation saw her reevaluating her aspirations. "I understood the communications industry, I had success in my work in college, but I didn't want to be a reporter anymore," she reflects. So, in what many can describe as "typical Jenna fashion," she embraced change and dared herself to explore new uncharted waters, literally.  

As fate would have it, her first post-college interview landed her a role at a logistics company, where she started as an ocean import specialist. After mastering this role in 1 year, she eagerly transitioned to export, driven by her innate thirst for new challenges.  

In 2014, Jenna joined JAS as a customs entry writer, eventually expanding her responsibilities to manage the Charleston branch's air imports while also diving into the intricacies of the quoting process. Her growing expertise across various domains fueled her hunger for growth. "I had worked in customs entry writing, ocean import, ocean export, air import, and quoting. So, I asked myself again, what can I do next?" 

Fueled by her desire to tackle new challenges, Jenna set her sights on sales, leveraging her deep understanding of JAS's services. Her dedication was unmistakable as she pursued and earned her customs brokerage license, underscoring both her ambition and JAS's commitment to nurturing internal talent. She continued her path of success, earning new business and slowly growing her client base.  

In a proactive sales approach, Jenna launched the #JavawithJenna series on LinkedIn, leveraging her communication background to attract new audiences and generate leads, flipping the traditional cold-calling approach on its head. 

Now, in her newly acquired role as the Head of Country Sales for the Automotive Vertical, Jenna continues her quest for growth, always seeking the next challenge to conquer.  

In her nearly ten years at JAS, Jenna has flourished in an environment that she describes as eclectic and welcoming—a true melting pot of diverse backgrounds and perspectives. She credits the unique culture of JAS for fostering an environment where collaboration and growth thrive.  

Jenna's leadership style is marked by patience—a quality she believes is integral to navigating the complexities of the logistics industry. Her mentor, Brandon Miller, Vice President of Automotive Sales - Americas, has played a pivotal role in shaping her journey, emphasizing the importance of perseverance and passion in achieving success. 

Looking ahead, Jenna's focus is on expanding the automotive vertical, a challenge she embraces with enthusiasm, of course. She finds fulfillment in the dynamic nature of logistics, a field that demands constant learning and adaptability. Her advice to aspiring salespeople echoes her own journey: always be closing, challenge yourself to grow, and find joy both in and outside of work. 

Jenna Naylor's story embodies the spirit of Women@JAS, showcasing not just her individual achievements but also the collective strength and support that define the JAS culture. Congratulations, Jenna, on your well-deserved recognition as JAS USA's 2023 Salesperson of the Year and the #1 Global Business Development Manager Earner. Your journey inspires us all to reach greater heights and embrace every opportunity for growth. 

Customer Advisory: Adverse Weather Impacts Southern Brazil

As widely reported by various media outlets, the southern region of Brazil is currently facing a significant weather-related crisis in Rio Grande do Sul, leading to dire circumstances in the state's most severely affected cities.

The impact of this weather event extends beyond individual homes, affecting critical infrastructure and logistics. Major disruptions have been observed in transportation networks, with 85 sections of 38 highways either wholly or partially blocked.

Current updates are as follows:

  • Band-Deicmar is scheduled to resume operations on May 14, 2024, for DTA shipments bound for Canoas/RS post-import.
  • Operations in Novo Hamburgo remain suspended until further notice.
  • The closure of Porto Alegre airport is due to flooding in the capital of Rio Grande Sul, with operations indefinitely halted.
  • Import cargo is being accepted in Rio Grande, and ongoing efforts are in place for export shipments of cargo that were delivered before road blockages occurred. However, new processes face challenges due to restricted access and road closures.

We are commited to closely monitoring developments and sharing relevant information with everyone affected.

JAS Brazil announces the appointment of Karin Schöner as its new Managing Director/President.

JAS Brazil proudly announces the appointment of Karin Schöner as its new Managing Director/President, effective May 2, 2024.

Karin Schöner is a native Brazilian executive recognized for her extensive expertise and leadership in the logistics industry. With a distinguished career , Karin has held key roles in sales, general management, and strategic leadership across various countries and sectors, including airlines, freight forwarding, contract logistics, and maritime operations. Prior to joining JAS Brazil, Karin served as the President for a company in the East Coast of South America, where she successfully led transformation initiatives.

Karin's track record is a testament to her exceptional capabilities in navigating complex challenges, fostering strategic partnerships, and driving innovation in supply chain management. Her deep understanding of market dynamics, regulatory frameworks, and industry best practices positions her as a leader in the logistics landscape.

Throughout her career, Karin has demonstrated a commitment to developing and empowering her teams. Her leadership philosophy emphasizes mentorship, collaboration, and continuous learning, resulting in high-performing teams that consistently exceed expectations and deliver outstanding results. Karin's passion for nurturing talent and fostering a culture of excellence aligns seamlessly with JAS's core values and vision for sustainable growth.

"Karin's unparalleled expertise, strategic acumen, and commitment to excellence make her the ideal leader to propel JAS Brazil forward. We look forward to her transformative leadership and contributions to our continued growth and success in the region," Adrian Emmenegger, Executive Vice President of JAS Americas, expressed with confidence.

Karin Schöner's appointment as Managing Director/President reinforces JAS's commitment to delivering superior logistics solutions, driving innovation, and exceeding customer expectations across Brazil and beyond.

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