- The Carbon Border Adjustment Mechanism (CBAM) is a major EU framework established to reduce greenhouse gas emissions.
- CBAM applies to certain goods in sectors such as iron & steel, aluminium, cement, fertilisers, electricity, and hydrogen.
- There are exemptions for goods of low value, military use, and certain countries and territories.
- During the transitional period (1 October 2023
- 31 December 2025), importers or indirect customs representatives are responsible for reporting information on imported CBAM goods.
- The reporting obligation requires information on the quantity and CO2e emissions of the goods, as well as any carbon price paid in the country of origin.
- The information must be reported quarterly via the CBAM Transitional Registry.
- 3rd country producers need to provide relevant data to the EU importer or indirect customs representative for reporting purposes.
- From 1 January 2026, CBAM will have a financial obligation and imports can only be made by authorized CBAM declarants.
- CBAM declarants must declare embedded emissions and submit CBAM certificates for verification.
- The EU Commission will review the effectiveness of CBAM and may propose amendments to the regulation.
- Businesses should stay updated on the developments and prepare to fulfill CBAM obligations from 1 January 2026.
Source: kluwertaxblog.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.
