On 17 August 2023, the European Commission adopted the rules governing the implementation of the Carbon Border Adjustment Mechanism (CBAM) during its transitional phase. To help both importers and third-country producers, the Commission also published guidance for EU importers and non-EU installations on the practical implementation of the new rules.
Ricardo and Umwelt Bundesamt (Environment Agency Austria) have been supporting the European Commission in the development of the detailed monitoring and reporting requirements for the EU CBAM, as set out in the CBAM Implementing Regulation adopted/published last week. Furthermore, we have also written the accompanying guidance documents for non-EU operators of installations producing CBAM goods and for EU reporting declarants importing CBAM goods into the EU, which are available on the European Commission website.
What does the EU’s new Carbon Border Adjustment Mechanism (CBAM) regulation mean for your organisation?
The EU’s CBAM regulation will enter into force with its transitional phase on 1 October 2023. The mechanism requires EU importers to report and eventually pay for the embedded carbon emissions of goods imported into the EU within carbon-intensive sectors, including iron and steel, aluminium, fertilisers and cement.
With the first reporting obligations due in January 2024, the time to understand and prepare for CBAM reporting is now.