The EU recently adopted the CBAM (Carbon Border Adjustment Mechanism), which involves tax on imported goods based on their emissions during production.
Previously, EU companies with high carbon emissions could save taxes by moving production to countries with lower CO2 taxes. But the CBAM certificates will stop this loophole.
During the transition period from 2024 to 2026, there is only a reporting obligation. Importers and facility operators must get used to tracking carbon data in the required format. From 2026, a tax will be introduced corresponding to the difference in CO2 tax where the products are produced.
NewTracks is already in the process of reporting in accordance with CBAM, but financially this will have minimal impact on our products. We work with factories that already have a strong focus on environmental protection and sustainable production, and every year we carry out audits of all our factories where we also focus on emissions and environmental protection.
China as a nation also has high goals for the green shift, and in many areas we see that development there is faster than in Europe. In 2023, China was leading the world in installing both solar energy and wind power, far ahead of the EU.
We at NewTracks are proud to supply high-quality products from China, produced in an environmentally friendly way. Financially, we do not think CBAM will have any significance for our products, but we are positive about equal competitive conditions.
When it comes to the dialogue with the EU, it is important to note that CBAM primarily concerns relations with third countries, and there is an ongoing discussion about how this will affect Norway. The government is working to ensure that carbon pricing helps to reduce emissions without moving them to other countries.
Norway is open to discussion with the EU in order to safeguard the international competitiveness of Norwegian businesses and at the same time comply with our obligations according to the WTO agreement.
In 2024, CBAM will include imports of goods such as cement, iron and steel, aluminium, fertiliser, electricity and hydrogen from countries outside the EEA.
From 2034 there will be full implementation, and CBAM categories will be extended to energy-intensive industrial sectors, including oil refineries, steel mills and the production of lime, glass, ceramics, pulp, paper, board, acids and large organic chemicals.
In Norway, CBAM considered not EEA-relevant, and there is no legal obligation to introduce this system.
With offices in Shenzhen and Oslo, we are your best link to quality production in China.