- The EU’s Carbon Border Adjustment Mechanism (CBAM) regulation was signed on May 10, 2023 and came into force on May 17.
- CBAM aims to reduce greenhouse gas emissions by imposing a charge on certain imported products for emissions released during production processes in the country from which the goods are exported.
- The regulation covers cement, electricity, fertilisers, iron and steel, aluminium, and hydrogen originating from third countries.
- A transition reporting requirement will apply to certain carbon-intensive products from October 1, 2023, with full implementation from January 1, 2026.
- Importers must apply to be an “authorised CBAM declarant” via the CBAM registry from January 1, 2025.
- The application must include basic information on the applicant, certification by tax authorities, a declaration of compliance with customs and tax legislation, evidence of financial and operating capacity, estimated monetary value and volume of imported goods, and identification of the person(s) acting on behalf of the applicant.
Source BDO
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