Global Carbon Regulations

Global Frameworks & Regulations

EU ETS, CBAM, GRI, TCFD, CDP, SBTi — international carbon regulations and reporting frameworks that affect Asian businesses.

EUIn operation since 2005

EU ETS (Emissions Trading System)

EU ETS covers ~40% of EU greenhouse gas emissions. Applies to power plants, industrial facilities, and aviation within the EU. Relevant for Indian/Asian companies with EU subsidiaries or EU-based supply chain partners.

· Covers: Power, Industry, Aviation, Maritime

· Phase 4: 2021–2030

· CBAM link: CBAM certificate prices follow EU ETS auction prices

· Source: Directive 2003/87/EC, as amended

EUDefinitive period from 1 January 2026

EU CBAM (Carbon Border Adjustment Mechanism)

CBAM puts a carbon price on imports into the EU of iron and steel, cement, aluminium, fertilisers, hydrogen and electricity. The EU importer declares the embedded emissions and surrenders CBAM certificates; Indian exporters supply the verified emission data.

· Sectors: Iron & Steel, Cement, Aluminium, Fertilisers, H₂, Electricity

· Transitional reporting: Oct 2023 – Dec 2025

· Definitive period: from 1 January 2026; first annual declaration in 2027

· Source: Regulation (EU) 2023/956, as amended

GlobalBest Practice / Often Required by Investors

GRI Standards (Global Reporting Initiative)

GRI is the world's most widely used sustainability reporting framework. GRI 305 covers emissions disclosures (Scope 1, 2, 3). Many large buyers and investors require GRI-aligned reporting as a condition of doing business.

· GRI 305: Emissions (Scope 1, 2, 3)

· GRI 302: Energy

· Universal Standards (GRI 1, 2, 3) from 2023

· Free to use — no licence required

GlobalMandatory in UK/NZ/Singapore, Investor-Required Globally

TCFD (Task Force on Climate-Related Financial Disclosures)

TCFD's 4-pillar framework (Governance, Strategy, Risk Management, Metrics & Targets) is used by investors to assess climate risk. SGX mandates TCFD for large-cap listed companies. ISSB IFRS S2 is built on TCFD.

· 4 pillars: Governance, Strategy, Risk, Metrics

· ISSB IFRS S2 aligns with TCFD (from 2024)

· SGX: Mandatory for large-cap

· Used by: Investors, banks, insurers globally

GlobalVoluntary — A-List Score Highly Valued

CDP (Carbon Disclosure Project)

CDP runs the world's largest environmental disclosure system. Companies, cities, and regions disclose climate, water, and forest data annually. An A-List score signals leadership and is valued by institutional investors.

· Annual questionnaire (climate, water, forests)

· A-D scoring (A-List = leadership)

· 2023: 23,000+ companies disclosed

· Linked to SBTi and GRI

GlobalVoluntary — Fastest Growing Corporate Standard

SBTi (Science Based Targets initiative)

SBTi validates corporate emission reduction targets aligned with 1.5°C science. Near-term target: 42% reduction by 2030. Net-zero standard: 90%+ reduction by 2050. Over 7,000 companies globally have committed.

· Near-term: 42% reduction by 2030

· Net-zero: 90%+ reduction by 2050

· Sector-specific pathways available

· Free validation — but requires GHG inventory

Track all global obligations in one place

MintCarb CarbonComply covers CCTS, BRSR, CBAM, Singapore CCS, GRI, TCFD, CDP, and SBTi — with automated reporting and deadline alerts.

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