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How does the Carbon Border Adjustment Mechanism impact construction developers

The Carbon Boarder Adjustment (CBAM) will challenge construction developers to adapt by increasing the costs of carbon-intensive materials, driving changes in supply chains, and encouraging more sustainable building practices. Find out more about how developers can prepare for these new regulations and avoid financial penalties in the near future.

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The Carbon Border Adjustment Mechanism is part of the EU’s “Fit for 55” climate package, designed to help the region meet its goal of reducing net greenhouse gas emissions by 55% by 2030 as an intermediate goal towards climate neutrality by 2050.

Essentially, the CBAM will impose a carbon tax on imported goods from countries with less stringent environmental regulations, or when EU products are replaced by more carbon-intensive imports. This tax ensures that European businesses are not put at a competitive disadvantage for implementing greener practices, such as those in the renewable energy sector

How does the Carbon Border Adjustment Mechanism Affect Developers?

From 1 January 2026, businesses will be required to pay for the embedded emissions generated in the production of CBAM goods outside the EU. This payment will be in the form of purchasing CBAM certificates from the national CBAM authority.

Developers will also be required to report to the CBAM Transitional Registry on the amount of greenhouse gasses emitted during the production of CBAM goods outside the EU on a quarterly basis. Developers who incorrectly, or fail to submit a CBAM report each quarter will face a penalty set between €10 and €50 per tonne of the unreported embedded emissions.

These new regulations reinforce the need for developers to adopt more sustainable construction practices. This can include the use of greener materials, integrating renewable energy systems such as solar panels into designs, and implementing energy-efficient building methods.

 

Carbon Border Adjustment Mechanism
Carbon Border Adjustment Mechanism

Benefits of moving to Renewable Energy

Developers who are prepared to integrate renewable energy and reduce their carbon footprints can not only avoid CBAM’s financial impacts and the volatility of fossil fuel pricing but will also position themselves as leaders in a more sustainable construction industry.

Eclipse Renewables provides energy management systems that optimise energy usage by delivering real-time data on consumption. This helps developers reduce waste, improve efficiency, and minimise reliance on carbon-heavy energy sources, ultimately lowering their projects’ carbon footprints and aligning with CBAM goals.

Developers who focus on sustainability can avoid the costs associated with CBAM and also align with broader industry trends toward decarbonisation.

Why work with us?

What can we do to help you?

Lower your carbon footprint by implementing our renewable solutions and reduce costs

Reduce reliance on carbon-intensive materials, and stay compliant with CBAM. By partnering with us, developers can minimise the financial impacts of these new regulations.

By partnering with us, we can help your business implement renewable energy solutions and energy management products that can not only lower operational costs, but by controlling your energy consumption and thus reducing your carbon footprint will also enhance your business’s global image due to contributing to sustainable practices and corporate social responsibility.

With the implementation of renewable energy solutions businesses can not only avoid the costs associated with CBAM, but can also avail of government support in the form of grants, tax credits and subsidies such as The new Non-Domestic Microgen Grant, by the SEAI, which offers financial support to businesses to help them install solar PV systems.

 

Our Services

As an expert, trusted partner to the leading brands in renewable energy and energy management products. Eclipse Renewables specifies, supplies, and commissions the very best products for each and every application your business may require.

Don’t hesitate to reach out to our team for further details regarding a move into renewable solutions.

You can get in touch by filling in the form below.

 

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