Sustainability
Decarbonization, circular economy, and supply chain due diligence
CBAM (Carbon Border Adjustment Mechanism) Explained — Covered Products, Certificate System, and Impact on Japanese Companies
A systematic overview of the CBAM (Carbon Border Adjustment Mechanism) that entered full application in January 2026, covering its regulatory design, six targeted sectors, certificate mechanism, Omnibus simplification amendments, and direct and indirect impacts on Japanese companies.
EU Approves Germany's Industrial Decarbonization Plan — €5 Billion CCfD to Support Transition in Steel, Chemicals, and Cement
In spring 2026, the European Commission formally approved €5 billion in state aid for Germany's industrial decarbonization program 'Klimaschutzverträge (Climate Protection Contracts).' Targeting three sectors where European carbon costs weigh most heavily — steel, chemicals, and cement — the scheme's core mechanism addresses the barriers that prevent companies from committing to decarbonization investments.
CBAM Declaration Practical Flow: Steps and Submission Data Japanese Exporters Must Prepare
While EU importers bear the direct obligation to file under the EU Carbon Border Adjustment Mechanism (CBAM), Japanese manufacturers are responsible for calculating and providing embedded emissions data. This article systematically organizes roles by stakeholder, declaration workflows, and submission data requirements from a practical standpoint—covering quarterly reporting during the transitional period through annual declarations and certificate surrender from 2026 onward.
CBAM Cut India's Aluminum Exports by 41.7% — The First Evidence That Carbon Costs Have Reshaped the Structure of Trade
Following the full enforcement of the EU CBAM, India's unalloyed aluminum exports to the EU fell 41.7% in a single year. Drawing on the first quantitative data showing carbon costs materializing as real trade costs, we examine the structural risks now facing Japanese manufacturers.
SSBJ and CBAM Launch Simultaneously in 2026 — The Dual Challenge of 'Disclosure and Carbon Costs' Facing Japanese Companies
A February 2026 amendment to Cabinet Office ordinances establishes the legal basis for mandatory SSBJ disclosure, while CBAM enters full enforcement in January of the same year. Whether companies can design an integrated response to both regulations around the shared foundation of supply chain emissions data will determine their competitive edge.
CBAM After the Transition Period: What Japan's Steel and Chemical Exporters Must Address
The EU Carbon Border Adjustment Mechanism (CBAM) entered full implementation in January 2026. With six sectors covered — steel, aluminum, fertilizers, cement, hydrogen, and electricity — Japanese exporters face requirements to calculate and declare embedded emissions. This article examines the current state of compliance and the key practical issues at stake.