The only daily-priced instrument for immediate CBAM compliance.
The Aither CBC (CBAM Benchmark Certificate) is a financial instrument designed for immediate compliance. It is a digital asset that mirrors the price of the EU ETS, allowing you to settle your Carbon Border Adjustment Mechanism liability instantly.
The EU has introduced the Carbon Border Adjustment Mechanism (CBAM) which is a carbon tariff on the production of carbon-intensive goods imported to the EU such as iron, electricity, hydrogen, cement, fertilizers, and aluminum. This tariff is a way to ensure that a price has been paid for the carbon emissions generated during the production of imported goods.
This marks the end of the 2023–2025 transitional reporting period, shifting to a system where importers must buy CBAM certificates to cover embedded emissions, matching the carbon price paid by EU producers.
With over 15 years of experience in environmental commodities and carbon markets, Aither is trusted by more than 6,000 clients globally.
Aither enables you to stay ahead of the market by effectively managing the cost of CBAM certificates. Through strategic planning and execution, our team empowers you to maintain stability in a highly dynamic market.
Aither supports the implementation of energy efficiency measures across your operations. These projects can significantly reduce your carbon footprint, positioning your business competitively as emissions calculations become a regulatory requirement.
Aither supports all clients with up-to-date information and proactively notifies you of any developments, ensuring uninterrupted operations and a sustainable competitive advantage.
Start with our customized CBAM FAQ
The EU has introduced the Carbon Border Adjustment Mechanism (CBAM) which is a carbon tariff on the production of carbon-intensive goods imported to the EU such as iron, electricity, and hydrogen.
This tariff is a way to ensure that a price has been paid for the carbon emissions generated during the production of imported goods. This means that producers outside the EU will need to account for the carbon emissions associated with their products and importers have to pay a price for them if producers do not pay for the emissions locally.
The mechanism works out a calculation that provides an equivalent carbon price of imported goods to that of the carbon price applied domestically within the EU.
As companies move their carbon-intensive productions outside the EU and EFTA to countries with less strict climate policies, the risk of ‘carbon leakage’ becomes higher as these products are then imported into EU.
Since the ETS is a regional scheme that does not cover global markets, CBAM was put into place to address this carbon leakage that undermines EU’s net zero ambitions.
The CBAM is EU’s tool to address carbon leakage and eventually replace the allocation of free allowances which is already set to phase out completely by 2034.
Transitional vs. Definitive Phase (October 2023 – 2026)
There will be a gradual phasing in of the CBAM to allow EU and non-EU businesses adjust their policies and work out an effective transition to their compliance.
The Transitional Phase:
Spanning from October 2023 until 2026, this phase will apply to certain imports at high risk of carbon leakage such as cement, iron and steel, aluminium, fertilisers, electricity and hydrogen. As a pilot for CBAM, this phase will also work as a learning stage for all involved parties (importers, producers and authorities) to collect useful information and refine the mechanism for the second phase.
The single requirement of this phase is for importers to produce quarterly reports on the amount of goods and their direct and indirect greenhouse gases (GHG) emissions embedded during the production of these goods. Check Q4 for ways to report.
The Definitive Phase:
The CBAM will be put fully into force starting from 2026. Importers will be able to buy and surrender CBAM certificates and declare emissions.
The products’ scope will be adjusted to include (e.g. cement and fertilizers) more than 50% of the emissions in ETS covered sectors.
However, starting from January 2025, only the EU method will be accepted.
The reporting mechanism is facilitated through the CBAM Transitional Registry developed by the EU Commission to mainstream the process of communication and submission. Access to the registry is requested through the National Competent Authority (NCA) of the Member State in which the importer is established.
With the CBAM in full force, importers will need to:
Encouraging Cleaner Production Globally: CBAM creates a market advantage for cleaner production. By making high-emission goods more expensive, it incentivizes companies around the world to invest in cleaner technologies and practices to remain competitive as potential exporters to the EU.
Leveling the Playing Field for EU Industries: because EU companies under the ETS face costs for carbon emissions, they are less competitive against firms in countries without similar schemes. CBAM addresses this by adding a charge on carbon emissions in imported goods, ensuring fair competition and preventing EU companies from being undercut by cheaper imports.
CBAM introduces a layer of administrative complexity for producers and importers. This includes registering with authorities, accurately calculating and reporting the embedded emissions of imported goods, requiring verification from suppliers or specialized expertise. Additionally, importers need to manage CBAM certificates, which involves purchasing and surrendering them to offset their import emissions.
These new procedures can lead to delays at customs if importers are not fully prepared or encounter issues with their documentation. Adapting internal systems to handle CBAM compliance, such as training staff and investing in new software, can be a challenge, particularly for smaller companies.
