- The Carbon Border Adjustment Mechanism (CBAM) entered its transitional phase on 1 October.
- During this phase, CBAM will only apply to imports of cement, iron and steel, aluminium, fertilisers, electricity, and hydrogen.
- EU importers of these goods will have to report on the volume of their imports and the greenhouse gas emissions during production.
- Importers are asked to collect data for the fourth quarter of 2023, with the first report due by 31 January 2024.
- Flexibilities have been built into the CBAM’s structure for the first year, such as using default values for reporting emissions and using the rules of the country of production.
- The transitional phase is a learning period for stakeholders and allows the European Commission to collect information on embedded emissions.
- The definitive period of CBAM starts in 2026, where importers will need to buy and surrender “CBAM certificates” for the GHGs embedded in imported goods.
Source: etaf.tax
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.
