The European Parliament on 18 April 2023 adopted rules for the new carbon border adjustment mechanism (CBAM), which is scheduled to begin its transition phase on 1 October 2023.
During the transition phase, EU importers of goods covered in the scope of the CBAM regulations will be required to submit quarterly reports of the embedded emissions of these goods to the European Commission.
Currently, carbon-intensive sectors such as aluminum, cement, iron and steel, fertilizers, hydrogen and electricity are covered by CBAM. However, it is expected that CBAM will be extended in the coming years to all products covered by the EU Emissions Trading System (ETS).
Source KPMG
