As part of the ‘Fit for 55 package’ that was published on 14 July 2021 by the European Commission, a proposal for a European Union Carbon Border Adjustment Mechanism (‘CBAM’) was released. The CBAM will be a levy on the importation of certain goods (i.e. cement, iron and steel, aluminium, electricity, and fertilisers). It is envisaged that the CBAM will enter into force as per 2023, whereby a transition period will apply between 2023 and 2026.
Source PwC NL