Bacuti hosted a webinar on the implications of European Sustainability Regulations on Importers. We hosted two distinguished panelists. The panelists shared their different view points - on from within and one from outside Europe.
Direktor integriertes Qualitäts-Management, Prokurist bei NETZSCH Pumpen & Systeme GmbH
Founder, Global Trade Research Initiative, Former Indian Trade Service officer, Part of India's WTO & FTA negotiating teams
A few key takeaways
Regulations are here to stay:
Sustainability regulations are here to stay. CBAM, with financial penalty, will become effective in a few months. Financial penalties for non-compliance are material
Regulations are complex and a burden:
Regulations are complex and run into 100s of pages. Everyone, in Europe and outside, are lobbying for simplification of the regulations through Industry trade bodies, governments and other channels
Company readiness is spread across a broad spectrum:
Not everyone is ready. Companies in Europe have make significant investments (> € 0.5 Million). On the other hand, companies in India are just waking up to the reality of these regulations and are scrambling to be compliant.
Driving Costly sub-optimal investments:
Companies in Europe have accepted that regulations are cost of doing business and have invested in teams, systems and processes. On the other hand, some of the exporters are considering unnatural business changes. For example, one steel company wants to set up a "green" line for Europe and another one for "Rest of the World".
Software investments are necessary:
Today companies investing almost ₹ 30,00,000 (or € 30,000) just to get a basic audit done find compliance process expensive.. Furthermore, there is significant complexity in measuring and reporting emissions, especially at the product level (PCF) including Scope 3. Manual processes do not scale. Significant investments in software is necessary.
If you have questions and want to know more or request a recording, please contact us at hello@bacuti.com
You can listen to the full recording below.
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