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The Future of the Automotive Industry: How JAS Can Help

By
Jim Ryan, Senior Vice President Automotive, JAS Worldwide
June 7, 2023
The automotive sector is experiencing an era of remarkable transformation. This shift is being propelled by the surge in electric vehicles (EVs), the growing demand for ride-hailing and car sharing services, and the increasing emphasis on sustainability.
The automotive sector is experiencing an era of remarkable transformation. This shift is being propelled by the surge in electric vehicles (EVs), the growing demand for ride-hailing and car sharing services, and the increasing emphasis on sustainability.

The automotive industry is undergoing an era of transformation. Unprecedented changes are occurring as the use electric vehicles (EVs) grows, ride-hailing services and car sharing soar in popularity, and the emphasis on sustainability grows stronger.

These changes are putting pressure on automotive manufacturers and suppliers to reduce costs and improve efficiency. In order to come out ahead, companies need to be able to adapt to these changes and find new ways to operate.

Key Points from Recent Automotive Trends

Recent articles from major automotive players highlight the challenges facing the automotive industry. These challenges include:

  • The rise of EVs: The rise of EVs is putting pressure on traditional automakers to invest in new technologies and manufacturing processes.
  • The increasing popularity of ride-hailing and car sharing: The increasing popularity of ride-hailing and car sharing services is reducing the demand for personal vehicles.
  • The growing focus on sustainability: The growing focus on sustainability is putting pressure on automakers to reduce their environmental impact.

These challenges are forcing automakers to rethink their business models and operations. In order to come out ahead, automakers need to be able to adapt to these changes and find new ways to operate.

How JAS Can Help

JAS can help automakers and suppliers navigate these challenges in a number of ways, including:

  • Reducing costs: JAS can help automotive manufacturers and suppliers reduce costs by providing efficient and cost-effective transportation solutions. Leveraging its extensive global network of partners and resources, JAS empowers automotive manufacturers and suppliers to efficiently transport parts and components.
  • Improving efficiency: JAS can help automotive manufacturers and suppliers improve efficiency by providing warehousing and logistics solutions. JAS has a network of secure warehouses around the world that can store parts and components until they are needed. JAS can also help companies manage their inventory and optimize their supply chains.
  • Meeting sustainability goals: JAS can help automotive manufacturers and suppliers meet sustainability goals by providing sustainable transportation and green logistics solutions. JAS has a number of initiatives in place to reduce its environmental impact, and can help its clients do the same.

Together, we can drive success in the changing automotive industry!

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The EU's Carbon Border Adjustment Mechanism (CBAM) is a regulatory framework introduced to address carbon leakage by imposing reporting requirements on importers of carbon-intensive goods, promoting transparency, incentivizing lower-emission choices, and leveling the playing field between domestically produced and imported goods.

As the European Union (EU) heightens its climate ambitions, there are increasing regulations related to "carbon leakage." This phenomenon occurs when EU-based companies shift carbon-intensive production to countries with less strict climate policies, potentially increasing emissions. To address this, the EU has introduced the Carbon Border Adjustment Mechanism (CBAM), an environmental regulation designed to establish a fair price for carbon emissions associated with the production of carbon-intensive goods entering the EU. Its purpose extends to encouraging cleaner industrial practices in non-EU countries. 

Goods Covered in the Initial Phase: 

The CBAM's scope encompasses products like cement, iron and steel, aluminum, fertilizers, electricity, and hydrogen in the transitional phase. Moreover, there are plans to evaluate the possibility of expanding the range of covered products by 2030, potentially including additional sectors. 

Impacts: 

  • Importers must carefully track and report emissions data for their imported goods. The European Commission is developing IT tools to help importers report and manage this data. 
  • Non-compliance with reporting requirements may result in financial penalties. 
  • The regulation introduces an additional layer of complexity in the import process. 

Timeline: 

As the CBAM unfolds between 2023 and 2035, it will have significant implications for industries, global competitiveness, and the fight against climate change. Here are some key dates to keep in mind: 

  • October 1, 2023: The CBAM enters its transitional phase. Importers of carbon-intensive goods begin reporting embedded greenhouse gas (GHG) emissions. 
  • January 31, 2024: The first reporting period for importers concludes. Flexibility in reporting methodologies is allowed. 
  • January 1, 2025: Reporting using only the EU method becomes mandatory. 

Benefits: 

  • Importers disclosing emissions data enhances transparency about the carbon impact of goods. 
  • The regulation incentivizes importers to choose lower-emission products, driving sustainable choices. 
  • Imported goods are subject to emissions reporting similar to domestically produced goods, leveling the playing field. 
  • The regulation raises awareness about carbon emissions associated with international trade. 

How Can JAS Support You? 

  • EU Import Customs Clearance: Our team of customs experts consult you and assist you in expediting the customs clearance process and the complexity of tariff codes, duties, taxes, and international trade regulations.* 
  • EU Regulation Monitoring: We keep you informed about CBAM updates and evolving regulations, ensuring you remain compliant and adaptable to changes. 

*The importer is at all times responsible for providing all documentation related to customs clearance, including correct shipment/tariff and emission-related data. 

Including maritime emissions in the EU Emissions Trading System marks a significant shift for the maritime logistics industry.

As part of ongoing efforts to combat climate change, the European Union (EU) has extended the Emissions Trading System (ETS) to include CO2 emissions from all large ships entering EU ports. Starting in January 2024, this move will hold shipping companies accountable for their carbon footprint, fostering energy efficiency and incentivizing low-carbon solutions within the maritime logistics industry.

Inclusion of Maritime Emissions in the EU ETS:

In May 2023, the EU officially adopted amendments to the ETS Directive and the Regulation on the Monitoring, Reporting, and Verification (MRV) for maritime transport. These amendments will integrate maritime emissions into the ETS, encompassing 50% of emissions from voyages starting or ending outside the EU and 100% of emissions between two EU ports or when ships are within EU ports. This step will apply to all large ships of 5,000 gross tonnage and above, irrespective of their flag.

Transition Period and Compliance:

To facilitate a smooth transition, shipping companies will gradually be required to surrender emission allowances for a portion of their reported emissions:

  • In 2025, they have to surrender allowances for 40% of their emissions reported in 2024.
  • In 2026, the percentage will increase to 70% for emissions reported in 2025.
  • From 2027 onwards, they must surrender allowances for 100% of their reported emissions.

Impact on the Maritime Logistics Industry:

  • Compliance Costs and Financial Implications: Companies will face extra expenses as they are now required to purchase and sell emission allowances. In order to stay within their allotted allowances, substantial capital investments will be necessary for the adoption of emission-reducing technologies and sustainable fuel alternatives.
  • Operational Adjustments: Shipping companies must optimize vessel routes, reduce idle times, and adopt slow steaming practices to align with emission reduction targets. This will require careful planning and coordination to maintain the efficiency and effectiveness of supply chain logistics.
  • Market Competitiveness and Differentiation: Companies embracing sustainable practices will gain a competitive edge as eco-conscious customers and businesses are increasingly prioritizing environmentally responsible shipping solutions.
  • Collaboration and Information Sharing: Close collaboration with authorities, port operators, and stakeholders will help ensure accurate emission reporting and progress monitoring.

Conclusion:

Including maritime emissions in the EU Emissions Trading System marks a significant shift for the maritime logistics industry. While compliance with the regulation will present challenges, it also creates opportunities for the sector to embrace sustainability, foster innovation, and collaborate effectively to contribute to a greener future.

JAS Indonesia Team at the Local School, Sharing Books and Smiles on International Literacy Day 2023.

JAS Indonesia, in partnership with the Bruni Foundation, marked International Literacy Day (ILD) by organizing the "Book Donations for World Literacy Day" event on September 8, 2023. Led by JAS Sustainability Ambassador Sigit Yulianto, this event exemplified the team's dedication to championing literacy as a fundamental human right and their commitment to positively impacting the community.


Held at a local school, the ILD event showcased the incredible potential of collective community action. Its success was driven by a joint effort: prior to the event, the JAS office initiated a book donation campaign among its employees, and a group of JAS Indonesia colleagues volunteered to represent JAS at the local school. However, the event went beyond mere book donations; the team also shared food, drinks, and moments of joy, fostering an atmosphere of unity that enriched the day.


The teams' actions serve as a reminder that when individuals and organizations unite for a common purpose, they can create positive change. Literacy is not merely about reading; it is a pathway to a brighter future for all.  


The Sustainability Ambassadors at JAS play a key role in spearheading and executing sustainability initiatives. They are driven by a passion for creating a more sustainable organization and work closely with the Worldwide sustainability team and key stakeholders. Their expertise and influence serve as catalysts for transformation, inspiring and guiding others to contribute to a greener and more inclusive future.  


International Literacy Day has been observed globally on September 8 since 1967, emphasizing the significance of literacy as a basic human right. It also serves as a call to advance progress towards achieving Sustainable Development Goal 4 (SDG4) on education and lifelong learning.

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