With less than two weeks until the start of the Carbon Border Adjustment Mechanism (CBAM) transitional period (1 October 2023 – 31 December 2025), the European Commission published the CBAM Implementing Regulation on the reporting obligations in the Official Journal of the European Union on 15 September 2023. During the transitional period, declarants are required
The Carbon Border Adjustment Mechanism (CBAM) is a measure to ensure that imported goods pay a price for their carbon emissions that is comparable to the price paid by EU domestic producers under the EU Emissions Trading System (EU ETS). The CBAM Regulation entered into force on 17 May 2023. During the transitional period (1 October 2023 – 31 December 2025), declarants must submit quarterly CBAM reports to the CBAM Transitional Registry no later than one month after the end of the relevant quarter.
On 13 June 2023, the European Commission communicated a draft implementing regulation (IR) on reporting obligations. Below, we review the key elements of the draft IR. Interested parties can submit their comments to the Commission until 11 July 2023.
The CBAM Regulation entered into force on 17 May 2023. During the transitional period (1 October 2023 – 31 December 2025), declarants must submit quarterly CBAM reports that include: (i) the total quantity of imported goods; (ii) the direct and indirect emissions embedded in the imported goods; and (iii) any carbon price effectively paid in the country of origin for the embedded emissions. The CBAM Regulation empowers the Commission to adopt an implementing regulation on reporting obligations. On 13 June 2023,the European Commission published a draft IR on reporting obligations, which will be applied during the transitional period.
To understand the basic features of the CBAM, please see our previous alert.Continue Reading EU Carbon Border Adjustment Mechanism: consultation open until 11 July on the reporting measures to apply during the transitional period