CBAM and Competitiveness: Should the Question Be "Price" or "Reliability"?

Overview

A report analyzing the impact of the EU Carbon Border Adjustment Mechanism (CBAM) on industrial competitiveness. ## Key Points ### 1. CBAM System Overview and Current Status - Transition period started October 2023, full implementation from January 2026 - Covered products: Steel, aluminum, cement, fertilizers, electricity, hydrogen - Carbon price: EU-ETS price applied (currently 85 euros/ton CO2) - Impact on Japanese companies: Estimated 280 billion yen annually (for EU export companies) ### 2. "Price" vs "Reliability" Competition Axis - Price competitiveness: Japanese products 5-15% more expensive with carbon cost addition - Value of reliability: Differentiation through quality, delivery, and after-sales service - Customer survey: 73% choose "reliable suppliers even at slightly higher prices" - Acceleration of green procurement: Decarbonization requirements across entire supply chains ### 3. Japanese Corporate Response Strategies - Short-term measures: Building accurate carbon emission measurement and reporting systems - Medium-term measures: Decarbonization investments in production processes (average 12 billion yen/company) - Long-term strategy: Creating added value with green products, developing carbon-neutral products - Success case: Company A expanded European market share by 5% through early response The article recommends viewing CBAM not as a threat but as an opportunity for differentiation through decarbonization technology.

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A report analyzing the impact of the EU Carbon Border Adjustment Mechanism (CBAM) on industrial competitiveness.

Key Points

1. CBAM System Overview and Current Status

  • Transition period started October 2023, full implementation from January 2026
  • Covered products: Steel, aluminum, cement, fertilizers, electricity, hydrogen
  • Carbon price: EU-ETS price applied (currently 85 euros/ton CO2)
  • Impact on Japanese companies: Estimated 280 billion yen annually (for EU export companies)

2. "Price" vs "Reliability" Competition Axis

  • Price competitiveness: Japanese products 5-15% more expensive with carbon cost addition
  • Value of reliability: Differentiation through quality, delivery, and after-sales service
  • Customer survey: 73% choose "reliable suppliers even at slightly higher prices"
  • Acceleration of green procurement: Decarbonization requirements across entire supply chains

3. Japanese Corporate Response Strategies

  • Short-term measures: Building accurate carbon emission measurement and reporting systems
  • Medium-term measures: Decarbonization investments in production processes (average 12 billion yen/company)
  • Long-term strategy: Creating added value with green products, developing carbon-neutral products
  • Success case: Company A expanded European market share by 5% through early response

The article recommends viewing CBAM not as a threat but as an opportunity for differentiation through decarbonization technology.

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