What is CBAM?
- CBAM is an import levy on carbon emissions that occur during production of certain carbon intensive products imported into the EU from countries with less stringent environmental rules compared to the EU
- CBAM will be levied in the form of selling CBAM certificates. The price of CBAM certificates will be calculated based on the EU Emissions Trading System (“ETS”) prices
- The company should be properly registered as an ‘authorized CBAM declarant’ to import the products subject to CBAM
- CBAM leads to collection and reporting of new information on imported goods as well as development of relevant internal procedures.
Source Deloitte
