- The European Union has published the Implementing Regulation for the Carbon Border Adjustment Mechanism (CBAM) during the transitional period from 1 October 2023 until 31 December 2025.
- During this period, obligations under the CBAM are limited to quarterly reporting duties regarding embedded emissions of relevant goods listed in the Annexes.
- The newly adopted Implementing Regulation specifies these quarterly reporting obligations and provides more detailed guidance on how to calculate the embedded emissions.
- The CBAM aims to prevent carbon leakage and reinforce the international outreach of European environmental policies.
- The first reports under CBAM’s transitional regime must be submitted by 31 January 2024, and failure to comply with reporting requirements will result in penalties.
- The Implementing Regulation provides further details on the contents of CBAM reports, including the quantity and type of goods imported as identified by their code under the EU’s Combined Nomenclature.
- The Commission has developed dedicated IT tools and materials to support importers and businesses in their compliance efforts.
- The coming months will be crucial for the future of the mechanism, as the Commission will conduct a review of the functioning of the CBAM and of the product scope of the CBAM-Regulation.
- The Polish Government has filed a request with the General Court of Justice of the EU to annul the CBAM-Regulation under Art. 263 of the Treaty of the Functioning of the EU, arguing that the CBAM mainly relates to fiscal policy.
Source: eaccny.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
