Climate Change Regulation

📢 EU CBAM is Now Fully Operational: What You Need to Know On January 1, the EU’s Carbon Border Adjustment Mechanism (CBAM) came into full effect. Here are the key things sustainability, finance, and strategy teams should understand: 🔹 An overview CBAM is the first fully operational border carbon pricing system designed to prevent carbon leakage, the shifting of emissions-intensive production outside the EU, while protecting EU firms subject to internal carbon costs. 🔹 What has changed? Unlike prior pilots, the 2026 implementation bases costs on actual emissions intensity of imports. The EU has “externalized” carbon pricing beyond its borders, which has implications for supply chains and global trade flows, especially for goods like steel, aluminum, cement, electricity, fertilizers, and certain chemicals. 🔹 What do companies need to do? Importers and their non-EU suppliers will need to: - Map supply chains and embedded emissions - Coordinate with suppliers on verified emissions data - Assess carbon cost exposure and potential downstream price impacts 📈 The big picture CBAM goes beyond a compliance issue for firms and has real implications for supply chains and operating costs. Investors and businesses are beginning to factor in carbon pricing and supply-chain decarbonization into their financial decisions. We’ve been helping firms manage these shifts and respond strategically. Send me a message if you’d like to learn more. Visual courtesy of Carbonwise #CBAM #EURegulations #CarbonPricing #ClimatePolicy #SustainableTrade #ClimateRisk #SupplyChainEmissions #NetZero #ESG #ClimateFinance #Decarbonization

CBAM vs Corporate Carbon Footprint vs Product Carbon Footprint Carbon reporting is no longer “one size fits all. Today, companies are dealing with three very different carbon reports, each serving a distinct purpose: 1- CBAM (Carbon Border Adjustment Mechanism) CBAM is not a sustainability report; it’s a trade and customs compliance mechanism. Focus: Imported products into the EU What it measures: Embedded CO₂ per imported good Level: Product-by-product (CN code) Outcome: Direct financial cost (CBAM certificates from 2026) Audience: Customs authorities, finance & trade teams - CBAM answers: “How much carbon is embedded in this imported product and how much must I pay for it?” 2- Corporate Carbon Footprint (CSRD / GHG Protocol) This is the organisation-level climate disclosure most companies are familiar with. Focus: The entire company What it measures: Scope 1, 2, and 3 emissions Level: Organisational Outcome: Regulatory compliance, ESG credibility, access to finance Audience: Regulators, investors, lenders, boards - Corporate footprint answers: “What is the total climate impact of our business?” 3- Product Carbon Footprint (ISO 14067 / LCA) This is the most granular and technically detailed of the three. Focus: A single product What it measures: Lifecycle emissions (cradle-to-gate or cradle-to-grave) Level: Process, supplier, and unit level Outcome: Market differentiation, B2B requirements, pricing power Audience: Customers, procurement teams, supply-chain partners - Product footprint answers: “How carbon-intensive is this specific product?” Why does this matter? These three reports are complementary, not interchangeable: - CBAM drives carbon cost at the border - Corporate footprint drives strategy, disclosure, and capital access - Product footprint drives supply-chain transparency and competitiveness Companies that treat them as separate silos will struggle. Companies that align product data → corporate reporting → CBAM compliance will be ahead of the curve. Carbon reporting is no longer just about measurement. It’s about regulatory readiness and commercial resilience. #GHG #ISO #CBAM #compliance #resilience

ISO 14064 vs. GHG Protocol: Moving Beyond the Basics For decarbonization professionals, the distinction between the GHG Protocol and ISO 14064 isn't just academic—it's fundamental to robust and credible climate action. It's not a question of "which one is better," but "how do they work together?" Let's break down their strategic roles: The GHG Protocol: The "What" of Accounting This is our global accounting rulebook. It provides the detailed methodology to build a comprehensive inventory, forming the bedrock of any decarbonization strategy. 🔹 Core Function: Corporate and value chain GHG accounting for strategic insight and comparability. 🔹 Key Features for Experts:     • Scope 2 Nuance: Mandates dual reporting (location-based and market-based), which is critical for accurately reflecting renewable energy procurement strategies.     • Scope 3 Depth: Provides the framework for tackling the 15 categories of value chain emissions, the biggest challenge and opportunity for most organizations. 🔹 Primary Use Case: The essential foundation for setting Science-Based Targets (SBTs) and reporting to CDP. ISO 14064: The "How" of Assurance This is our international standard for process integrity. It doesn't tell you how to calculate emissions but specifies the requirements for a high-quality, verifiable GHG management system. 🔹 Core Function: Ensuring the credibility, conformity, and third-party assurance of your GHG data. 🔹 Key Features for Experts:     • Part 1 (Organization): Focuses on the GHG inventory management plan and process robustness.     • Part 2 (Projects): The gold standard for project-level accounting, requiring baseline scenarios and proof of 'additionality'—vital for the Voluntary Carbon Market (VCM).     • Part 3 (Verification): Defines the rulebook for verifiers, allowing for specified levels of assurance (limited vs. reasonable) that are crucial for investor confidence and regulatory compliance. The Synergy: Accounting Meets Assurance A best-in-class approach doesn't choose between them; it integrates them. The optimal workflow: Calculate your inventory using the detailed rules of the GHG Protocol. Structure your management and reporting processes according to ISO 14064-1. Verify the final GHG assertion with an independent third party following ISO 14064-3. This creates a defensible, transparent, and decision-useful GHG report that stands up to the highest levels of scrutiny. What are your thoughts? How does your organization navigate the interplay between GHG Protocol accounting and ISO 14064 verification? #Decarbonization #GHGProtocol #ISO14064 #CarbonAccounting #ESG #Sustainability #ClimateAction #GHGReporting #CorporateSustainability #Verification #Assurance #SBTi #CDP

The UK Government has published a new Clean Power Action Plan to protect households and boost the economic growth of clean energy. The plan is welcomed, especially as it aims to unlock £40billion of investment a year in clean power. But we need to act now. To deliver a cleaner, more secure power system for Britain we urgently need to get building clean energy infrastructure on an unprecedented scale. This will require a bolder and more decisive approach from the Government and from regulatory bodies to remove the barriers to development and to back the technologies we need. Today’s plan provides important further clarity on how this will be done, and the pace at which it has been developed is particularly welcome. We need this urgency to continue. With £40bn of capital investment needed per year, the key thing now is to help derisk that investment in order to minimise costs. We look forward to seeing further clarity over the coming months on market design in particular, where we continue to urge government to rule out zonal pricing as soon as possible to remove the associated risks and sharpen the focus on what really counts – delivering mission-critical infrastructure, boosting energy security and driving economic growth. 🔗 To read SSE plc's full response head to the link in the comments below 👇 Department for Energy Security and Net Zero #CleanPowerActionPlan

🚀 Breakthrough: Bundestag passes #CO₂ Transport & Storage Act (#KSpTG) – are #CCUS projects now ready to be executed? This is a pivotal day for Germany’s hard-to-abate industries. Yesterday, the German Bundestag provided the 𝗻𝗲𝗰𝗲𝘀𝘀𝗮𝗿𝘆 𝗹𝗲𝗴𝗮𝗹 𝗯𝗮𝘀𝗶𝘀 𝗳𝗼𝗿 𝗹𝗮𝗿𝗴𝗲-𝘀𝗰𝗮𝗹𝗲 𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝗶𝗮𝗹 𝗱𝗲𝗰𝗮𝗿𝗯𝗼𝗻𝗶𝘇𝗮𝘁𝗶𝗼𝗻 by passing the Kohlendioxid-Speicherung-und-Transport-Gesetz (KSpTG). This is the regulatory green light we've been waiting for – especially for sectors with unavoidable process emissions like cement and lime. For #Sequestration of CO₂ the following has been agreed  ◾ 𝗼𝗳𝗳𝘀𝗵𝗼𝗿𝗲 storage, competence lies fully with the federal government. ◾ 𝗼𝗻𝘀𝗵𝗼𝗿𝗲 storage, the Länder must explicitly opt in – several have already indicated they are looking into this. 🏗️ The law also designates the construction of 𝗖𝗢₂ 𝗶𝗻𝗳𝗿𝗮𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 𝗮𝘀 𝗯𝗲𝗶𝗻𝗴 𝗼𝗳 “𝗼𝘃𝗲𝗿𝗿𝗶𝗱𝗶𝗻𝗴 𝗽𝘂𝗯𝗹𝗶𝗰 𝗶𝗻𝘁𝗲𝗿𝗲𝘀𝘁,” streamlining future permitting — a major step toward fast development of this critical part of the value chain. 𝗧𝗵𝗲 𝗧𝗵𝗿𝗲𝗲 𝗠𝗶𝘀𝘀𝗶𝗻𝗴 𝗣𝗶𝗹𝗹𝗮𝗿𝘀 𝗳𝗼𝗿 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝗶𝗮𝗹 𝗖𝗖𝗨𝗦 𝗦𝘂𝗰𝗰𝗲𝘀𝘀 The path from legislative intent to operational reality requires three immediate, interconnected actions focused on finance and market creation. I see these as non-negotiable next steps: 1. 𝗦𝗲𝗰𝘂𝗿𝗲 𝘁𝗵𝗲 𝗖𝗢₂ 𝗧𝗿𝗮𝗻𝘀𝗽𝗼𝗿𝘁 𝗜𝗻𝗳𝗿𝗮𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 (De-Risking Mandate) CO₂ pipelines and hubs require massive upfront investments and long planning horizons. To unlock private investment, a state-backed financial security mechanism is needed to de-risk projects and avoid future transport bottlenecks. 2. 𝗙𝘂𝗻𝗱 𝗖𝗮𝗿𝗯𝗼𝗻 𝗖𝗮𝗽𝘁𝘂𝗿𝗲 𝗧𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆 (CCfD) CCUS projects remain costlier than conventional methods. Carbon Contracts for Difference (CCfDs) can close this gap by ensuring price certainty for CO₂ abatement and enabling final investment decisions. But the CCfD will not be enough to bring all projects trough FID. 3. 𝗘𝘀𝘁𝗮𝗯𝗹𝗶𝘀𝗵 𝗚𝗿𝗲𝗲𝗻 𝗟𝗲𝗮𝗱 𝗠𝗮𝗿𝗸𝗲𝘁𝘀 Create demand for low-carbon products through public procurement and other market-pull mechanisms. This will secure off-takers and incentivize industrial transformation — including CCU products. The KSpTG is the foundation; these three pillars will determine the speed and success of Germany’s industrial green transformation. 𝗪𝗵𝗶𝗰𝗵 𝗽𝗶𝗹𝗹𝗮𝗿𝘀 𝗱𝗼 𝘆𝗼𝘂 𝘁𝗵𝗶𝗻𝗸 𝗮𝗿𝗲 𝗺𝗶𝘀𝘀𝗶𝗻𝗴? #KSpTG #NetZero #Decarbonization

Let’s be real — shipping has been getting away with free emissions for a long time. No carbon tax. No real targets. Just slow-moving vessels burning bunker fuel while the rest of us scramble for net zero. But that’s about to change. The International Maritime Organization (IMO) just did something historic — it approved a global carbon price for shipping. And this isn’t just industry talk. This could shake up the way we move goods, fuel vessels, and price carbon… globally. Here’s the gist: From 2028, ships will need to comply with a new two-tier system. Tier 1: Fuel standard – Ships must switch to cleaner fuels over time. Tier 2: Credit trading – Emit more? You buy credits. Emit less? You might get paid. The goal: Cut carbon intensity by 65% by 2040 (compared to 2008 levels). Yes, that’s a big target. But… it’s still not aligned with the 1.5°C ambition of the Paris Agreement. So we’re moving, but not fast enough. Why does this matter (even if you're not in shipping)? Because shipping moves 90% of global trade. What this means: the cost of shipping a banana, a sofa, or even a solar panel could change. And the carbon price on ships could spill over into other sectors—aviation, logistics, manufacturing. It also gives us a template for how a global carbon market might work. That’s huge. So what’s next? 2025: Final rules adopted. 2028: The system kicks in. Details like the actual carbon price and how funds will be used? Still being worked out. This might sound technical, but it’s a signal. The age of “business as usual” is running out of runway… or ocean. If a global agreement on shipping emissions is possible — what else might we finally get serious about? #sustainability #climatechange #carbonpricing #shipping #IMO #decarbonisation Picture of ships from Tanah Merah Beach

Carbon Pricing For International Shipping This will not be a flat carbon tax, but an ETS mechanism. The agreement is not finalised yet, but if eventually adopted, will surely drive substantial demand for biofuels. The challenge then will be to ensure rigorous (but not unreasonably strict) certification of biofuels so that it doesn't lead to outcomes like the destruction of rainforests. One can legitimately disagree whether palm oil as biofuels is good for the planet, but surely there should be no disagreement that producing biofuels from palm WASTE is a no-regrets move, since POME treatment in open ponds just produces methane leaks to the atmosphere. Sad to see the United States boycotted the talks when even petrostates participated. "THE International Maritime Organization is on track to approve a carbon price for global shipping that would force ships to cut their carbon intensity by 65% by 2040, pending nail-biting final approvals today. Countries voted 63-16 on Friday morning in favour of a compromise plan that Pacific Islands and green groups lambasted as too weak to meet IMO green targets, and petrostates decried as too onerous. The Marine Environment Protection Committee has not yet concluded, however, and sources fear there are still opportunities for states to stop the approval at the last minute by, for example, calling vote after vote on procedural grounds to delay the process. If approved, the two-tier credit trading scheme and fuel standard, known as J9, would force ships to reduce their fuel’s carbon intensity over time. A total of 79 delegations voted and more than 20 abstained, including most of the Pacific Islands. China and Brazil surprised many by voting yes. The US has boycotted the talks." "Ships with a GHG intensity higher than the baseline carbon intensity reduction, or Z factor, must pay $380 per tonne of CO2 equivalent on any emissions over the base limit, and a penalty of $100 per tonne CO2 equivalent in remedial units (RUs) on any emissions between the base tier and the second tier, called the Direct Compliance Target (DCT). A ship with GHG intensity below the DCT pays no fees and instead generates credits called surplus units (SUs) from the below the DCT, and can bank them for two years or sell them through an IMO GHG fuel intensity registry. Ships in carbon deficit (by using dirty fuel) can trade credits with ships in surplus. This makes it easier for ships lacking access to biofuels to comply. But it makes the market dynamics hard to predict, since we don’t know what DCT-compliant fuels will cost in the future." https://lnkd.in/gRyrJ44k

NEW ANALYSIS: Meeting European climate goals will require a stark contraction in fossil gas use. But in many countries gas grid planning is based on the assumption of infinite gas grid use. Despite the substantial implications for gas grid users and infrastructure, current grid planning does not adequately reflect this new reality. This misalignment poses a substantial barrier to the transition towards a sustainable energy system and underscores the need for more holistic planning. Alignment of energy infrastructure planning with other planning processes could better support climate and social goals. Regulations regarding heat planning, for instance, have significant consequences for gas grid infrastructure development, heating appliance regulations and consumer burdens. Infrastructure planning processes also do not yet address the support needed to ensure vulnerable energy users are able to fully participate in the transition to cleaner, more efficient technologies. Our study provides comprehensive information on the current state of the gas grid, its development, and the regulatory framework in selected European countries, and identifies current regulatory barriers for the phase-out of fossil gas. It concludes with recommendations on how Member States could better align energy infrastructure planning with the attainment of national and EU climate targets: - Adopt a national phase-out target and give energy regulators a net zero mandate. - Make the regulatory framework fit for the gas phase-out. - Adopt integrated heat and grid planning. - Plan future gas infrastructure based on realistic assumptions about future availability of zero-carbon heating technologies. - Track and collect harmonised data at the EU level. - Protect vulnerable customers. More in our Regulatory Assistance Project (RAP) & Oeko-Institut e.V. report released today.

⛓️ 2026: The Year the "CBAM Loophole" Closes If you thought the Carbon Border Adjustment Mechanism (CBAM) was just for raw material importers, it’s time to update your risk register! As we enter the definitive operational phase this month (Jan 2026), the European Commission is already moving to broaden the net. 🚨 What’s Changing? A new proposal (Dec 17, 2025) aims to expand CBAM to 180 downstream products starting January 1, 2028. This means the "carbon cost" is moving from the foundry to the factory floor. New targeted goods include: - Intermediate Industrial Goods: Cylinders, base metal fittings, fasteners, etc… - Downstream Steel/Alu: Ropes, cables, and stranded wire (>95% stainless steel), etc… - Finished Goods: The scope is even creeping into complex appliances like washing machines. 🛠 Why act in 2026? 1. Stop Relying on Default Values: As the regulation matures, punitive default values will get costlier. 2026 is your window to build primary data exchange with suppliers. 2. Procurement Re-pricing: Your Tier 1 and Tier 2 suppliers are about to face a massive administrative and financial shift. If you aren't mapping these 180 new product codes now, your 2028 margins are at risk. 3. The Global Signal: CBAM is already successfully driving global carbon pricing. This is no longer an EU "experiment"—it is the new global standard for trade. The Bottom Line: 2026 isn't just about complying with current rules—it’s about auditing your supply chain for the 2028 expansion. Are your procurement and sustainability teams synced on the new product codes? Or is CBAM still sitting solely in the "Compliance" silo? Want to know more about the proposal? https://lnkd.in/eJxt7aRc Let's talk strategy in the comments. 👇 #CBAM2026 #SupplyChainCarbon #ProcurementStrategy #Decarbonization #Greenly #ESGCompliance

𝗖𝗕𝗔𝗠: 𝗣𝗿𝗲𝗽𝗮𝗿𝗲 𝗡𝗼𝘄 𝗼𝗿 𝗥𝗶𝘀𝗸 𝗟𝗼𝘀𝗶𝗻𝗴 𝗔𝗰𝗰𝗲𝘀𝘀 𝘁𝗼 𝘁𝗵𝗲 𝗘𝗨 𝗠𝗮𝗿𝗸𝗲𝘁 Again, the #CBAM is no longer a distant threat; it's a reality rapidly approaching. As highlighted in our recent workshop with SGS, businesses trading with the #EU must take immediate action to ensure compliance and avoid disruptions. 💡𝗖𝗕𝗔𝗠 𝗶𝗻𝘁𝗿𝗼𝗱𝘂𝗰𝗲𝘀 𝘀𝗶𝗴𝗻𝗶𝗳𝗶𝗰𝗮𝗻𝘁 𝗿𝗲𝘀𝗽𝗼𝗻𝘀𝗶𝗯𝗶𝗹𝗶𝘁𝗶𝗲𝘀 𝗳𝗼𝗿 𝗯𝗼𝘁𝗵 #𝗶𝗺𝗽𝗼𝗿𝘁𝗲𝗿𝘀 𝗮𝗻𝗱 #𝗲𝘅𝗽𝗼𝗿𝘁𝗲𝗿𝘀 𝗜𝗺𝗽𝗼𝗿𝘁𝗲𝗿𝘀: Must declare the embedded carbon emissions of goods imported into the EU, purchase corresponding CBAM certificates, and face penalties for non-compliance. 𝗘𝘅𝗽𝗼𝗿𝘁𝗲𝗿𝘀: Must provide accurate Scope 1 and Scope 2 emissions data to importers, ensuring transparency and accuracy. This data is crucial for importers to meet their CBAM obligations. 🔑 𝗞𝗲𝘆 𝘁𝗮𝗸𝗲𝗮𝘄𝗮𝘆𝘀 𝗳𝗼𝗿 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗹𝗲𝗮𝗱𝗲𝗿𝘀: • 𝗔𝗰𝗰𝘂𝗿𝗮𝘁𝗲 𝗰𝗮𝗿𝗯𝗼𝗻 𝗮𝗰𝗰𝗼𝘂𝗻𝘁𝗶𝗻𝗴 𝗶𝘀 𝗰𝗿𝗶𝘁𝗶𝗰𝗮𝗹. Investing in robust data collection and reporting systems will enable businesses to meet CBAM obligations and identify opportunities for improvement. • 𝗗𝗲𝗰𝗮𝗿𝗯𝗼𝗻𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝗶𝘀 𝗲𝘀𝘀𝗲𝗻𝘁𝗶𝗮𝗹. Reducing emissions across the value chain is not only good for the planet but also crucial for long-term business success in the EU market. ✅ PT Gunung Raja Paksi Tbk 𝗶𝘀 𝘁𝗮𝗸𝗶𝗻𝗴 𝗽𝗿𝗼𝗮𝗰𝘁𝗶𝘃𝗲 𝘀𝘁𝗲𝗽𝘀 𝘁𝗼 𝗽𝗿𝗲𝗽𝗮𝗿𝗲 𝗳𝗼𝗿 𝗖𝗕𝗔𝗠: • We are committed to managing our own data and providing accurate Scope 1 and Scope 2 emissions data to our importers on a regular basis. 𝗧𝗵𝗲 𝘁𝗶𝗺𝗲 𝘁𝗼 𝗮𝗰𝘁 𝗶𝘀 𝗻𝗼𝘄. Don't wait until it's too late. Let's work together to navigate the complexities of CBAM and turn this challenge into a catalyst for positive change. #CBAM #CarbonEmissions #Sustainability #GlobalTrade #CarbonBorderAdjustment #ESG