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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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JAS and Naqel sign a strategic MoU to enhance Saudi Arabia’s logistics capabilities, combining global expertise with regional strength.

Riyadh, Saudi Arabia, March 24, 2025 – JAS and Naqel have signed a Memorandum of Understanding (MoU) to establish a strategic partnership. The partnership will combine Naqel's robust regional network with JAS's global logistics expertise. 

Naqel, a subsidiary of Saudi Post Logistics (SPL) provides comprehensive coverage across the GCC region. By partnering with JAS, one of the largest and fastest-growing privately-owned logistics companies, both organizations are well-positioned to support the Kingdom's ambitious plans and strengthen its role as a global logistics hub. 

"This partnership marks an exciting milestone for JAS as we expand our presence in Saudi Arabia," said Erwin Wittemaier, Area VP of JAS Middle East. "By combining our global reach with Naqel's deep-rooted regional expertise, we can unlock the full potential of the highly promising Saudi Arabian market."  

Dr. Sohail Choudhry, CEO of Naqel Express and Group Chief Commercial Officer of SPL said “This partnership is a bold step towards strengthening our joint position in the region, opening new trade lanes and supporting our SPL Group vision to be a National Logistics champion which reimagines logistics and enhances experiences for our customers” 

The MoU was signed by Dr. Adnan Almazrooa, Deputy CEO of Naqel, and Erwin Wittemaier, Area VP of JAS Middle East, in the presence of Dr. Sohail Choudhry, CEO of Naqel, Justin Sloan, Chief of Freight Forwarding at Naqel, and senior leaders from both organizations. 

This collaboration aims to develop strategic trade lanes, mitigate supply chain disruptions, and provide multi-modal logistics solutions that drive efficiency and resilience.  

By working together, JAS and Naqel will contribute to the Kingdom's Vision 2030 goals of enhancing trade integration, accelerating economic diversification, and fostering sustainable logistics solutions. 

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About JAS  

JAS, a global leader in logistics and supply chain solutions, was founded in Milan, Italy, in 1978. Headquartered in Atlanta, Georgia, USA, and supported by 7,000+ team members in more than 100 countries, it builds innovative and sustainable solutions that focus on customer needs and a better future for all. At the heart of JAS's success is its people who deliver customer value. As one of the largest and fastest-growing privately-owned logistics companies, JAS is committed to creating opportunities for our communities, customers, and colleagues to thrive. Together. 

About Naqel Express by SPL 

NAQEL Express by SPL has been operating in the MENA region since 2005 and is now a proud member of the Saudi Post family. With a presence in 16 countries, it has established itself as a formidable force in logistics. With its unrivaled distribution network and robust fleet, NAQEL seamlessly connects you with even the most remote corners of Saudi Arabia. 

NAQEL provides tailored solutions and services such as speedy e-commerce and courier delivery, efficient road transport, smart warehousing and order fulfillment, global air and sea freight forwarding, seamless supply chain solutions, project management, 3PL services, and easy customs clearance. Committed to delivering innovative and sustainable solutions with a focus on environmental responsibility, NAQEL strives to lead the logistics industry towards a greener and more sustainable future. 

Join JAS experts Laurie Arnold and Scott Cassell for a free webinar on March 25 at 3 PM EST, where they’ll break down the latest tariff regulations and what they mean for global trade.

March 25, 2025

3 PM EST

Stay Ahead of Changing Tariffs

Join JAS experts Laurie Arnold and Scott Cassell for a free webinar on the latest tariff regulations and their impact on global trade.

What’s on the Agenda?

  • Canada Tariffs
  • Mexico Tariffs
  • China Tariffs
  • Steel & Aluminum and Derivatives
  • And more!

Don’t miss this opportunity to get expert insights and ask your questions.

Meet the JAS team at Booth 71 LogiPharma 2025.

JAS is excited to announce its participation in LogiPharma 2025, the leading global supply chain conference for the life sciences industry. Taking place from April 8-10 at the Centre de Congrès de Lyon, France, the event brings together key industry leaders to discuss innovations and best practices in logistics.

As a trusted logistics partner, JAS will be exhibiting at Booth 71, where attendees can connect with our experts to explore cutting-edge cold chain solutions, temperature-controlled logistics, and end-to-end supply chain strategies tailored for the industry.

Continuing our tradition, the team will also take part in the LogiPharma 5K Run on Wednesday, April 8, at 7 AM.  

Join us at LogiPharma 2025 to discover how we are driving innovation in logistics and ensuring supply chain excellence for our partners around the world.

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