Understanding CBAM: Criteria, Reporting Obligations, and Implications for Importers

• The carbon border adjustment mechanism (CBAM) is a new ‘carbon tax’ that covers certain imported goods with high CO2 emissions.
• It aims to prevent circumvention of EU climate change legislation by importing goods from countries that do not reduce greenhouse gas emissions.
• The mechanism will align the prices of imported goods with their carbon intensity.
• The first reports under CBAM are due at the end of January 2024.
• Importers affected by CBAM have reporting obligations.
• The transitional phase of CBAM will be from October 1, 2023, to December 31, 2025.

Source: mddp.pl

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.