CBAM in Action
This is the current CBAM stage before full financial obligations begin.
What is the transition period or transitional phase?
This term means making a product across multiple countries.
What is a global value chain?
These are the three emissions scopes firms use to classify carbon output.
What are Scope 1, Scope 2, and Scope 3?
A company that does not know how to decarbonise often does not fully know this.
What is its supply chain?
About this share of a company’s total carbon footprint usually comes from its supply chain, or Scope 3.
What is about 70%?
This year marks the start of CBAM’s full implementation.
What is 2026?
This is the first step in many value chains before production begins.
What are raw materials?
This scope covers emissions from purchased energy.
What is Scope 2?
These companies often do not measure emissions at all.
What are SMEs?
This tool measures the environmental impact of a product from raw material to the end consumer.
What is LCA?
Name two sectors covered by CBAM.
Any two of these: cement, iron and steel, aluminium, fertilisers, electricity, hydrogen.
This is the final point in the value chain after transport and sales.
What is the end consumer?
This scope is considered the most important because it includes emissions across the entire value chain and is usually the largest share.
What is Scope 3?
Name these three obstacles to decarbonizing.
What are cheap labour, energy and materials, little financial incentive, and shareholder pressure?
This is the name of the new EU regulation that taxes carbon intensive imports.
What is EU CBAM?
These are what importers must report under CBAM during the transition period.
What are embedded emissions?
Companies spread production across countries mainly for this reason.
What are lower costs?
Name one heavy emitting industry discussed in the presentation.
What is manufacturing, shipping, agriculture, or fast fashion?
Emissions can be buried as deep as this tier in the supply chain.
What is Tier 4?
These are considered the hidden bulk and are harder to track.
What are Scope 3 emissions?
CBAM pressures firms to do this in order to remain competitive in the EU market.
What is reduce emissions or decarbonise?
Production, transport, and sales are all examples of this in a value chain.
What is a stage or step?
Scope 3 is more difficult to manage because many of these activities are outside the company’s direct control.
What are upstream and downstream activities?
Name two countries known for coal-heavy energy grids, making decarbonization harder?
What are China, India, Bangladesh and Vietnam?
Decarbonisation is hard for global companies because supply chains have many of these.
What are tiers?