Latest news with #CarbonBorderAdjustmentMechanism
Bloomberg
9 hours ago
- Business
- Bloomberg
EU Set to Offer Shields for Exporters Under Carbon Border Levy
The European Union is planning a measure to shield its exporters from disproportionate financial burdens when the bloc's landmark carbon border levy kicks in next year. The European Commission, the bloc's executive, will say on Wednesday that it wants to use the revenues generated by the Carbon Border Adjustment Mechanism to support production at risk of being relocated to third countries with laxer environmental rules, according to a draft document seen by Bloomberg News.
IOL News
10 hours ago
- Business
- IOL News
Looming Eskom tariff hike: Making sense of energy independence for South African businesses
The decision to move off-grid through solar PV is a strategic one. Image: Supplied The National Energy Regulator of South Africa recently approved average tariff increases of 12.74% for Eskom direct customers (effective April 1, 2025) and 11.32% for municipalities (effective July 1, 2025). These adjustments, coupled with structural changes to tariffs, including an overall increase in fixed charges and winter energy time-of-use peak energy charges for large industry, mining, and commercial customers, are forcing businesses to re-evaluate their energy strategies. The current energy climate in South Africa presents both challenges and opportunities for businesses. The reality of persistent tariff increases and the ongoing need for energy security means that relying solely on Eskom is no longer a viable long-term strategy for many industrial and commercial operations. Businesses are also facing a threat of tariffs being added to goods they export to the EU and US, should those goods be produced through 'dirty' energy sources such as Eskom's coal station dominated generation portfolio. The Carbon Border Adjustment Mechanism (CBAM) tariff will increasingly drive businesses to switch to clean, renewable energy in their production process. Internal competition between the manufacturers of solar panels in China is good news for local businesses, as this keeps driving down the cost of the panels. It makes going solar an entirely affordable option, but we recommend making this move only after careful consideration and planning. Moving from grid-dependency to solar independence Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ The decision to move off-grid through solar PV is a strategic one, driven by several key factors: Cost certainty and savings: While the initial investment in a solar PV system is a significant consideration, it offers long-term cost predictability and substantial savings. Unlike volatile Eskom tariffs, solar energy provides a hedge against future price hikes. The upfront costs are increasingly offset by rapidly decreasing solar panel prices and various financing options, including power purchase agreements, green energy loans, and attractive tax incentives. Going the financing route enables businesses to receive immediate net-monthly savings with solar and lock in stable electricity price increases, without spending any money. Energy security and resilience: A well-designed solar PV system, particularly a hybrid or off-grid solution with battery storage, provides a reliable and continuous power supply, mitigating the impact of outages, 'load reduction' and ensuring business continuity. A well-designed solar PV system, particularly a hybrid or off-grid solution with battery storage, provides a reliable and continuous power supply, mitigating the impact of outages, 'load reduction' and ensuring business continuity. Environmental responsibility and brand reputation : Adopting solar demonstrates a commitment to sustainability and reduces a company's carbon footprint. This not only aligns with global environmental goals but also enhances brand reputation. Adopting solar demonstrates a commitment to sustainability and reduces a company's carbon footprint. This not only aligns with global environmental goals but also enhances brand reputation. Increased property value and tax benefits: Investing in solar energy systems can significantly increase property value. SA Revenue Service (Sars) offers the 12B Solar Tax incentive for businesses investing in renewable energy, which enables a 27% rebate from Sars of the total cost of their solar system. Large Carbon Dioxide emitters also benefit by reducing their carbon tax, which will become increasingly more expensive from 2026 onwards, as phase 2 of the Carbon Tax Act comes into effect. Key considerations for businesses: Businesses considering the transition to solar need to assess the following: Energy consumption profile: A detailed analysis of current electricity usage patterns is crucial to determine the optimal size and type of solar PV system. System type: Grid-tied systems: Connected to the Eskom grid, these systems reduce reliance on Eskom and can feed excess power back into the grid, potentially earning credits. They are generally the most cost-effective entry point. Hybrid systems: Combining solar panels with battery storage, these offer greater energy independence and backup during outages while still leveraging grid connection. Off-grid systems: These systems provide complete energy independence, eliminating reliance on Eskom entirely. They typically involve solar panels, significant battery storage, and often a generator as a backup. Financial investment and ROI: Businesses must evaluate the initial capital outlay against the projected energy savings and potential return on investment (ROI), which can be recovered over a relatively short period given the long lifespan of solar panels. Tax incentives: Sars offered several incentives to encourage solar installation, but the structure has changed and Cruise there is a real chance that they will fall away from the 1st April 2026. This puts a time pressure on installations to happen this year still, before incentives fall away potentially. Financing options: Explore various financing models, including outright purchase, power purchase agreements for zero upfront cost, lease-to-own options, and green energy loans from financial institutions. Professional assessment and installation: Engaging reputable solar providers. Solar ensures accurate system design, high-quality equipment, and professional installation, maximising efficiency and longevity. The conversations around Eskom tariffs are louder than ever, and businesses are actively seeking solutions that offer stability and long-term economic sense. The next nine months will be a very interesting period for solar installations in South Africa, as companies move to make use of available tax incentives before they potentially fall away.
Time of India
13 hours ago
- Business
- Time of India
Tariffs, trade and the green pivot: How Indian exporters can navigate a shifting global order
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of .) The global trade environment is in flux, ever since the new tariffs have been announced, while also changing the market priorities. The United States has imposed a 26% reciprocal tariff on Indian goods, and that affects key sectors including steel, aluminum, pharmaceuticals, textiles, and policy is part of President Trump's trade strategy, which has been brought in to protect U.S. industries. But as it turns out, it might create challenges for Indian exporters by increasing costs and reducing the competitiveness in the U.S. market. For global manufacturers, this means re-routing trade flows to avoid higher practice, companies are considering alternate suppliers and markets. For example, major electronics firms are moving production from China to Vietnam and India to dodge Chinese tariffs. In metals, exports are being redirected to friendlier markets. The sudden policy shift has effectively reshuffled supply chains, prompting Indian manufacturers to rethink export strategies. Exporters are scrutinizing their footprints and looking beyond the U.S. – and beyond China – for has so far largely avoided direct U.S. targeting, but it will feel the repercussions. In the short term, Indian firms face added volatility: commodity input costs can spike under global tariffs, and demand in tariff-affected markets may soften. With U.S. markets effectively walled off for some exports, India risks surplus domestic output and dumping pressures. India's Steel Association warns that a sudden collapse in U.S. orders (85% down) could flood India's market with excess capacity. The U.S. tariff surge could even depress world prices, squeezing Indian term, experts emphasize the need for 'future-ready' export strategies. India's competitive position is improving – Indian products currently face lower U.S. tariffs than Chinese goods – which could make Indian exports more attractive if Chinese shipments shrink. However, it is important to understand that gains are not automatic. The IMF stresses that tariff wars curb growth and investment, which may translate into slower global demand (especially from developed markets). The Indian industry is already diversifying. In sum, while India avoids the immediate brunt of recent U.S. tariff moves, second-order effects – supply-chain flux, higher input costs, shifting orders – highlight the urgency of broadening trade links and building the US is taking a protectionist stance, the European Union is aggressively aligning trade policy with climate goals. The EU's Carbon Border Adjustment Mechanism (CBAM) imposes a carbon levy on imports of energy-intensive goods. CBAM, which expects foreign producers to match EU carbon prices on embedded emissions, creates a level playing field for EU industry but raises costs for higher-emitting the same time, new EU regulations tighten social and environmental rules in value chains. The Corporate Sustainability Due Diligence Directive (CSDDD) requires large companies to identify and mitigate human-rights and environmental harms across their global supply chains. Importers and traders of major commodities (rubber, soy, wood, cocoa…etc.) across the EU are asked to ensure their supplies are deforestation-free under EU Deforestation Directive (EUDR). Non-EU firms that supply EU companies will thus face direct scrutiny: sourcing from an Indian supplier now implies liability for that supplier's practices under EU law. Similarly, the Corporate Sustainability Reporting Directive (CSRD) (with European Sustainability Reporting Standards, ESRS) mandates that EU-listed companies disclose detailed sustainability metrics. These transparency rules will trickle down, as manufacturers must now provide data to their EU most affected are those with heavy carbon footprints or extended value chains. EU buyers will demand precise 'embodied emissions' data for every tonne imported under CBAM. In short, the EU has essentially made sustainability compliance a prerequisite for market access. Exporters to Europe must navigate a web of new rules – carbon pricing, supply-chain due diligence and rigorous sustainability reporting – in order to Indian exporters who embrace transparency, this new reality can be an opportunity rather than an obstacle. The EU's carbon taxes and procurement policies mean that low-carbon, traceable supply chains now enjoy a competitive edge. Case in point is CBAM which explicitly aims to 'incentivize foreign producers to adopt greener practices'. Indeed, producers who can furnish accurate emissions data will avoid hefty CBAM charges and may even be eligible for rebates if they've already priced carbon costs. With India's Carbon Credits Trading Scheme (CCTS) gaining momentum, manufacturers can align with global sustainability standards and enhance their access to international raw materials, exporters with certified sustainable practices earn market trust. Consumer and corporate buyers increasingly reward 'green' suppliers. A recent survey indicates that globally, compliance to external supply chain regulations is cited (by 59% of surveyed companies) as one of the key drivers of sustainable procurement practices. Many EU companies require their suppliers to meet net-zero targets. Thus, Indian firms that invest in traceability (logging of Scope 1,2,3 emissions) and transparent reporting can position themselves as preferred partners. Sustainability is no longer just a 'nice-to-have'; it's quickly becoming a gatekeeper for market access. Early movers – those who adopt renewable energy, optimize material use, and embed sustainability into their processes – can brand themselves as premium, compliant exporters and capture new demand in eco-conscious markets challenge is that most Indian SMEs are still far behind. Large Indian corporations (mandated to disclose) have made progress – recent data show about 94% of top listed companies now report Scope 1 and 2 emissions and energy usage. But at the micro, small and medium levels, sustainability tracking is scant. A global survey of small businesses found only ~4% could even provide data on their total emissions, and only 5% measured their renewable energy use. Most lack formal GHG accounting, have limited digital infrastructure, and do not issue sustainability are signs of change: a recent SIDBI MSME survey reported that 39% of firms increased investment in environmental measures during 2024, and 44% plan further investments next year. But these remain minority actions. Without urgent upgrades, thousands of small exporters risk being disqualified from lucrative contracts. With EU buyers demanding digital data on emissions and supply-chain practices, any gap in reporting or traceability could effectively shut small manufacturers out. Only a tiny fraction of India's MSMEs are equipped to measure or disclose this footprint. If unaddressed, this gap endangers India's competitive access to high-value technology can help close the gap cost-effectively. Smart digital platforms and AI tools are increasingly available to simplify compliance. The UN-backed SME Climate Hub, for example, offers Indian MSMEs free online tools – a Business Carbon Calculator to identify emissions sources and a web-based reporting portal to log annual emissions – making it easier to start the climate disclosure process. In the private sector, a new generation of startups and software solutions are applying AI to sustainability. By detecting inefficiencies in real time, such systems guide business leaders to reduce emissions, waste and power draw without manual data the face of recent U.S. tariffs, Indian exporters cannot afford complacency. These policies bring near-term headaches, but they also reinforce a vital lesson: diversification is essential. For Indian industry, the EU market – Europe's $18 trillion economy – now presents a clear opportunity for growth. Success in Europe will require a dual focus on digitalization and decarbonization. Exporters who can digitize their operations, embed carbon tracking into routine practice, and transparently disclose their environmental footprint will not only meet new EU trade rules but also unlock new disruptions from trade barriers should galvanize Indian firms to accelerate their sustainability journey. Those who act decisively today stand to transform uncertainty into a long-term advantage, cementing India's place as a reliable, green supplier on the global writer is CEO and Co-founder, Sprih
African Manager
a day ago
- Business
- African Manager
Low-carbon transition and business competitiveness in spotlight at STB
In an international context where climate ambition is gaining momentum, STB Bank organized the Green Value Forum on Monday, June 30, 2025, an unprecedented awareness-raising event dedicated to the low-carbon transition and the competitiveness of Tunisian companies. According to the organizers, this initiative is part of STB's CSR strategy, which actively supports its clients and partners in facing new European regulatory challenges, notably the Carbon Border Adjustment Mechanism (CBAM). The main objectives of this event were to inform and raise awareness among businesses about CBAM-related issues and its impact on exports. It also aimed to explain carbon footprint accounting methodologies and available tools, as well as to highlight feedback from companies already engaged in decarbonization efforts. The forum served as a platform to present support solutions and Tunisian innovations related to the low-carbon transition. As a pioneering public bank, STB Bank reaffirms its commitment to sustainable development and the competitiveness of its clients. Why This Forum? The CBAM is a turning point for exporting companies. It imposes a carbon price on products imported into Europe, directly affecting the competitiveness of Tunisian industries. Anticipating these requirements means not only mitigating risks but also seizing new opportunities: access to green financing, entry into new markets, and increased attractiveness to investors. A Holistic Approach Given the current situation, Tunisian companies, especially exporters, would benefit from initiating and accelerating their decarbonization processes in preparation for the CBAM, set to come into force in 2026. Under this regulation, importers in the European market must declare the emissions associated with the production of imported goods and may be required to pay an additional tax on those imports. To decarbonize, a company must first define GHG (greenhouse gas) measurement and reduction objectives, conduct an emissions inventory to calculate them, and identify direct and indirect emissions linked to its annual operations. Then, especially for exporters, it will likely be necessary to quantify the carbon footprint of their products to meet international standards. This includes measuring emissions and carbon capture throughout the entire life cycle, from the extraction or generation of raw materials to end-of-life processing. The development of a low-carbon strategy comes after emissions quantification, with the aim of setting medium- and long-term reduction targets. These should align with existing sectoral or national pathways, according to the document, which also provides an analysis of national frameworks in Italy, Spain, and Germany concerning GHG emissions. Tunisia's decarbonization strategy adopts a comprehensive approach, particularly in its resilience component, taking into account current and future developments in vulnerable priority sectors, climate evolution, and the country's socio-economic situation. It sets long-term adaptation goals for Tunisia to climate change, identifies key areas of focus, and outlines the resources needed to achieve them.
Yahoo
2 days ago
- Business
- Yahoo
Maersk rolls out AI-driven trade and tariff platform to navigate customs
Maersk has introduced the Maersk Trade & Tariff Studio, a digital platform designed to help global cargo owners navigate the complexities of an unpredictable trade landscape. This AI-driven solution addresses challenges such as rising tariffs, increased regulatory oversight, and disrupted customs processes through a centralised system for managing customs and tariffs. After extensive testing with major clients, the platform became available for cargo imported into the US, with a global rollout planned for August. It integrates seamlessly with Maersk's logistics services but can also operate independently for cargo owners. Many global companies currently rely on a fragmented network of up to 40 local customs brokers, resulting in disjointed data, reduced transparency, and overpaid duties. Maersk's data indicates that an average of 5–6% of tariffs are overpaid due to a lack of centralised data and optimisation. Additionally, 20% of shipment delays are attributed to inadequate customs preparation. Only 50–55% of trade eligible for Free Trade Agreements (FTAs) fully capitalises on these opportunities, despite the availability of more than 650 FTAs globally, according to the company. The Maersk Trade & Tariff Studio features AI-powered tariff engineering and optimisation, ensuring accurate application of over 6,000 product codes and more than 20,000 sub-codes. It includes upstream compliance risk screening to prevent delays, detentions, and penalties, while providing real-time updates through data partners and Maersk's network of 2,700 customs experts worldwide. The platform also assists companies in complying with complex regulations, including product safety, labour standards, and emerging environmental mandates such as the EU's Carbon Border Adjustment Mechanism (CBAM), as non-compliance can lead to significant fines and market restrictions. Maersk Trade and Customs Consulting global head Lars Karlsson said: 'Today's environment is defined by unpredictability, with newly imposed and suddenly postponed tariffs creating what many of our customers describe as 'tariff chaos'. 'Maersk Trade & Tariff Studio is our answer to this challenge—bringing clarity, compliance, agility and cost optimisation to global supply chains when goods are crossing borders.' Recently, Maersk unveiled a new class of 17,480TEU vessels featuring dual-fuel methanol propulsion, built at Hyundai Heavy Industries in Ulsan, South Korea. These container ships will improve Maersk's services by linking Eastern Asia with Northern Europe. "Maersk rolls out AI-driven trade and tariff platform to navigate customs" was originally created and published by Ship Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
