The European Union’s (EU) Carbon Border Adjustment Mechanism (CBAM) requires foreign producers to measure, monitor, and report greenhouse gas (GHG) emissions embedded in imported products. Fundamentally, CBAM will subject foreign manufacturers to the same price per ton of embedded carbon emission limits that are imposed on domestic manufacturers under the EU’s Emissions Trading System (ETS).
The CBAM regulation entered into force in May 2023. Therefore, the first reporting phase of the CBAM regulation begins October 1, 2023, with importers required to submit their first reports by January 31, 2024, for the 2023 fourth-quarter period. The purchase of CBAM certificates (and therefore payments) begins January 1, 2026.
Source: www.ecoengineers.us
