- The European Carbon Border Adjustment Mechanism (CBAM) came into force on October 1, 2023.
- EU importers must submit their first report under CBAM by January 31, 2024.
- The report should include information on the embedded emissions in goods imported during the first quarter of CBAM’s application.
- CBAM aims to prevent carbon leakage by ensuring imported goods are subject to the same emissions prices as EU-produced products.
- CBAM will gradually introduce obligations and reduce free allocations until it replaces the EU Emission Trading System by 2034.
- Importers can claim a reduction in CBAM certificates if they have already paid a carbon price in a third country.
Source: insightplus.bakermckenzie.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.
