- The European Union (EU) will begin implementing a transitional phase of the Carbon Border Adjustment Mechanism (CBAM) from 1 October 2023 as part of its “Fit for 55” package of measures.
- The CBAM is designed to tackle carbon leakage, which occurs when companies relocate their production to non-EU countries with less stringent carbon regulations.
- Importers of various products will be required to pay a CO2 price, aiming to ensure that EU companies producing comparable products are not put at a competitive disadvantage.
- The main area of application will initially be direct emissions, and the CBAM may be extended to indirect emissions in the future.
Source Taxand
Latest Posts in "European Union"
- VAT Concepts Explained: Chain Transactions/Triangulation
- E-Invoicing in France, Germany, and Italy: Systems, Timelines, and Regulatory Models Compared
- EU Council and Parliament Agree on Major Customs Reform, Introducing Single Data Hub and New Authority
- EU Reaches Historic Agreement on Customs Union Reform, Modernising Rules for E-Commerce and Trade
- EU Customs Union Undergoes Major Reform for Smarter Data and Stronger Borders
