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The European CBAM: Obligations, Timeline, and Scope of Application

  • The European Carbon Border Adjustment Mechanism (CBAM) entered into force on 1 October 2023.
  • EU importers must submit their first report under the CBAM by 31 January 2024.
  • CBAM aims to ensure that imported goods are subject to the same emissions prices as products produced within the EU.
  • The CBAM will gradually introduce obligations over the Transitional Phase, which ends on 31 December 2025.
  • From 1 January 2026, free allocations will be reduced and offset by CBAM certificates until the EU Emission Trading System is completely replaced by CBAM in 2034.
  • CBAM will account for cases where importers have already paid a carbon price in a third country.


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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