What is the Carbon Border Adjustment Mechanism (CBAM)?
Carbon Border Adjustment Mechanism (CBAM) targets imports of carbon-intensive products, in full compliance with international trade rules, to prevent offsetting the EU’s greenhouse gas emissions reduction efforts through imports of products manufactured in non-EU countries, where climate change policies are less ambitious than in the European Union. It will also help prevent the relocation of the production or the import of carbon-intensive products.
Which products?
Cement, aluminium, fertilisers, electric energy production, iron and steel.
Exemption
Threshold: consignments with a value of less than €150
Liability of the tax
- Importers of the products on which CBAM is applicable
Date of implementation
- As of 2023
- Some provisions will apply as of 2026
Sources
- Council of the EU agrees on the Carbon Border Adjustment Mechanism (CBAM)
- Draft regulation of the European Parliament and of the Council establishing a carbon border adjustment mechanism
- Regulation establishing a carbon border adjustment mechanism – General approach
Latest Posts in "European Union"
- AG Kokott’s Opinion: VAT Exemption, Vouchers, and Margin Scheme for In-Game Gold Trading
- EU Reaches Agreement on 2028 Customs Reform
- VAT and Transfer Pricing: ECJ’s Arcomet Decision Clarifies Intra-Group Service Remuneration and VAT.
- VAT on Transfer Pricing Adjustments: Importance of Detailed Documentation in Court Rulings
- E-Invoicing in the EU: Tax Authorities’ Data Use and Its Impact on Businesses
