The EU's Carbon Border Adjustment Mechanism, what does it mean?
The application of CBAM will start gradually, but rapidly, from 2023 onwards
Transitional reporting data must be collected from 1.10.2023 onwards. Initially, the scope will cover the production of iron, steel, cement, aluminum, fertilizers, electricity and hydrogen and, under certain conditions, the associated indirect emissions. In addition, the CBAM applies to certain source materials and extends to some downstream products such as screws and bolts and similar iron or steel products.
From 2026, the obligations will be extended. Imports of CBAM goods will become subject to authorization, requiring i.e., the acquisition of the necessary number of CBAM certificates.
The obligation to report during the transitional period and to obtain CBAM certificates applies to all individuals and companies importing CBAM goods. The transitional reporting obligation is for the period 1.10.2023-31.12.2025.
Now is the time to check whether you are in the scope of the CBAM rules. If you import products covered by CBAM, you should make sure of the timeline for compliance and check whether the necessary information is available from either the seller or the manufacturer. CBAM compliance at national level is monitored by national Authorities and the Customs.
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