- The EU Carbon Border Adjustment Mechanism (CBAM) will be implemented on 1 October 2023.
- CBAM aims to prevent carbon leakage by imposing a carbon price on imported carbon-intensive goods.
- The transition period for the EU CBAM will begin on 1 October 2023, with full implementation expected by 1 January 2026.
- Initially, the CBAM will apply to products such as iron and steel, aluminium, cement, fertilisers, electricity, and hydrogen.
- Importers or indirect customs representatives will be responsible for reporting information and meeting compliance obligations.
- The UK government is considering implementing a similar measure to address carbon leakage, but the response to the consultation is still pending.
Source: taxscape.deloitte.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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