EU: CBAM - Carbon Border Adjustment Mechanism launched

Carbon Border Adjustment Mechanism

Regulation (EU) 2023/956 on the creation of a Carbon Border Adjustment Mechanism (CBAM) has entered into force. The regulation is intended to reform the Energy Tax Directive 2003/96/EC by imposing a levy on imports at the border to the European Union for the CO² emissions generated during production. In future, this levy will take the form of CBAM certificates.

The introduction of the CBAM started on 1 October 2023, which continues the EU emissions trading scheme for imports from non-EU countries (cement, electricity, fertilizers, iron and steel, hydrogen) and provides for a transitional phase with a reporting obligation for imports from 2023 to 2025. From 2026, the CBAM is to come into full force, replacing the emissions trading model of CBAM certificates. The scope is to be extended to other products by 2030.

The products currently covered by the CBAM can be found in Annex I of the regulation, including CN codes.

Do you have any questions about CBAM? We are at your disposal.
 

Author
Material & Environmental Compliance Consultant
Linda Kritzler (B. A.)

Published on 01.12.2023
Category: Focus Automotive, Focus Industry, Focus Consumer Goods & Retail, Fokus Electrical and Wireless, Fokus Medical Devices, Compliance

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