Question 1

What are the phases of CBAM implementation?

Accepted Answer

The Carbon Border Adjustment Mechanism (CBAM) is being implemented in two phases: a transitional phase and a permanent phase.The CBAM transitional phase runs from October 1, 2023 to December 31, 2025 and requires EU importers to report the embedded greenhouse gas emissions of in-scope goods on a quarterly basis, without purchasing CBAM certificates.The CBAM permanent phase begins on January 1, 2026. From this point forward, importers must submit annual emissions declarations and purchase CBAM certificates to cover a growing share of embedded emissions, with full financial coverage required by 2034.

Question 2

What is the Carbon Border Adjustment Mechanism (CBAM)?

Accepted Answer

The Carbon Border Adjustment Mechanism (CBAM) is an EU regulation that places a carbon price on certain imported goods based on their embedded emissions.CBAM is designed to prevent carbon leakage by ensuring imported products face a comparable carbon cost to goods produced within the EU under the EU Emissions Trading System (EU ETS). The regulation currently applies to carbon-intensive goods such as iron and steel, aluminum, cement, fertilizers, electricity, and hydrogen, and requires importers to calculate and report emissions using defined EU methodologies.

Question 3

What is a CBAM certificate?

Accepted Answer

A CBAM certificate is a tradable unit that represents one tonne of CO₂-equivalent emissions embedded in imported goods subject to the Carbon Border Adjustment Mechanism.During the CBAM permanent phase, EU importers must purchase and surrender CBAM certificates annually to account for the emissions associated with their imports. Certificate prices are linked to the average EU ETS carbon price, and the number of certificates required may be reduced if a carbon price was already paid in the country of origin. Accurate supplier emissions data helps minimize certificate costs.

Question 4

What is Extended Producer Responsibility (EPR)?

Accepted Answer

Extended Producer Responsibility (EPR) is a regulatory approach that shifts the responsibility for managing a product’s end-of-life—from governments and taxpayers—onto the producers. Manufacturers are required to cover costs for collection, recycling, and safe disposal, and may also need to design products with sustainability and recyclability in mind.

Question 5

Why should U.S. manufacturers care about EPR now?

Accepted Answer

EPR is no longer limited to the EU. The U.S. already has 146 EPR laws across 35 states, with packaging rules expanding rapidly in states like California, Oregon, and Colorado. Manufacturers face growing compliance fees, reporting requirements, and recycling targets, making it critical to build EPR programs now.

Question 6

How can companies manage EPR compliance effectively?

Accepted Answer

To comply with EPR, companies need strong supply chain visibility, accurate materials data, and systems for reporting across multiple jurisdictions. Platforms like Assent simplify compliance by collecting supplier data, managing reporting workflows, and preparing documentation for Producer Responsibility Organizations (PROs).

Question 7

What is the Stop-the-Clock mechanism in the EU Omnibus Simplification Package?

Accepted Answer

The Stop-the-Clock mechanism delays the reporting deadlines under the CSRD and CS3D. It gives large companies and listed SMEs more time to prepare by pushing back CSRD reporting for second- and third-wave companies by two years and delaying the CS3D start date by one year.

Question 8

Does the Stop-the-Clock mean companies can pause CSRD or CS3D preparation?

Accepted Answer

No. The directives still apply, and companies should continue building their sustainability data programs. The delay offers time to simplify processes — but reporting requirements remain.

Question 9

Are non-EU companies affected by the CSRD or CS3D delays?

Accepted Answer

Non-EU companies with EU customers or operations still need to collect supply sustainability data. The timeline postponement gives non-EU companies more time to get their sustainability programs in order.

Question 10

What are the phases of CBAM implementation?

Accepted Answer

The Carbon Border Adjustment Mechanism (CBAM) is being implemented in two phases: a transitional phase and a permanent phase.The CBAM transitional phase runs from October 1, 2023 to December 31, 2025 and requires EU importers to report the embedded greenhouse gas emissions of in-scope goods on a quarterly basis, without purchasing CBAM certificates.The CBAM permanent phase begins on January 1, 2026. From this point forward, importers must submit annual emissions declarations and purchase CBAM certificates to cover a growing share of embedded emissions, with full financial coverage required by 2034.

Question 11

What is the Carbon Border Adjustment Mechanism (CBAM)?

Accepted Answer

The Carbon Border Adjustment Mechanism (CBAM) is an EU regulation that places a carbon price on certain imported goods based on their embedded emissions.CBAM is designed to prevent carbon leakage by ensuring imported products face a comparable carbon cost to goods produced within the EU under the EU Emissions Trading System (EU ETS). The regulation currently applies to carbon-intensive goods such as iron and steel, aluminum, cement, fertilizers, electricity, and hydrogen, and requires importers to calculate and report emissions using defined EU methodologies.

Question 12

What is a CBAM certificate?

Accepted Answer

A CBAM certificate is a tradable unit that represents one tonne of CO₂-equivalent emissions embedded in imported goods subject to the Carbon Border Adjustment Mechanism.During the CBAM permanent phase, EU importers must purchase and surrender CBAM certificates annually to account for the emissions associated with their imports. Certificate prices are linked to the average EU ETS carbon price, and the number of certificates required may be reduced if a carbon price was already paid in the country of origin. Accurate supplier emissions data helps minimize certificate costs.

Question 13

What is Extended Producer Responsibility (EPR)?

Accepted Answer

Extended Producer Responsibility (EPR) is a regulatory approach that shifts the responsibility for managing a product’s end-of-life—from governments and taxpayers—onto the producers. Manufacturers are required to cover costs for collection, recycling, and safe disposal, and may also need to design products with sustainability and recyclability in mind.

Question 14

Why should U.S. manufacturers care about EPR now?

Accepted Answer

EPR is no longer limited to the EU. The U.S. already has 146 EPR laws across 35 states, with packaging rules expanding rapidly in states like California, Oregon, and Colorado. Manufacturers face growing compliance fees, reporting requirements, and recycling targets, making it critical to build EPR programs now.

Question 15

How can companies manage EPR compliance effectively?

Accepted Answer

To comply with EPR, companies need strong supply chain visibility, accurate materials data, and systems for reporting across multiple jurisdictions. Platforms like Assent simplify compliance by collecting supplier data, managing reporting workflows, and preparing documentation for Producer Responsibility Organizations (PROs).

Question 16

What is the Stop-the-Clock mechanism in the EU Omnibus Simplification Package?

Accepted Answer

The Stop-the-Clock mechanism delays the reporting deadlines under the CSRD and CS3D. It gives large companies and listed SMEs more time to prepare by pushing back CSRD reporting for second- and third-wave companies by two years and delaying the CS3D start date by one year.

Question 17

Does the Stop-the-Clock mean companies can pause CSRD or CS3D preparation?

Accepted Answer

No. The directives still apply, and companies should continue building their sustainability data programs. The delay offers time to simplify processes — but reporting requirements remain.

Question 18

Are non-EU companies affected by the CSRD or CS3D delays?

Accepted Answer

Non-EU companies with EU customers or operations still need to collect supply sustainability data. The timeline postponement gives non-EU companies more time to get their sustainability programs in order.

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What Is the CBAM Financial Impact for Importers?

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No, Supply Chain Sustainability Isn’t Going Away

Q2 2025 Quarterly Innovation Updates

CSRD Reporting: Stop-the-Clock Omnibus Proposal Approved

Quarterly Innovation Spotlight: Learn How Assent Is Simplifying Supply Chain Sustainability

EU Delivers Proposals for Omnibus Simplification Package: Changes & Expectations for EU Sustainability

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What Is the CBAM Financial Impact for Importers?

How EPR is Transforming Product Compliance for U.S. Manufacturers

What Is Extended Producer Responsibility (EPR)?

No, Supply Chain Sustainability Isn’t Going Away

Q2 2025 Quarterly Innovation Updates

CSRD Reporting: Stop-the-Clock Omnibus Proposal Approved

Quarterly Innovation Spotlight: Learn How Assent Is Simplifying Supply Chain Sustainability

EU Delivers Proposals for Omnibus Simplification Package: Changes & Expectations for EU Sustainability

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