- The transition phase of the Carbon Border Adjustment Mechanism (CBAM) started on 1 October 2023.
- The transition phase will be in effect from 1 October 2023 to 31 December 2025.
- During this phase, companies importing goods affected by CBAM have reporting obligations.
- Starting from 1 January 2026, imports will only be possible with CBAM certificates, which will have a fee.
- The current product groups subject to CBAM are cement, iron and steel, aluminium, fertilisers, electricity, and hydrogen.
- EU importers of these products must declare the volume of their imports, but no financial adjustments are required at this stage.
- Importers will have to collect data for the fourth quarter of 2023 and submit their first report by 31 January 2024.
- The CBAM structure has flexibility for the first year, allowing the use of default values or the application of monitoring, reporting, and verification requirements of the country of manufacture.
- The EU provides aids on CBAM, including a guide and factsheets.
Source: awb-international.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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