We would like to provide you with updated information and important additional documents on the Carbon Border Adjustment Mechanism (CBAM). Short Information from the document containing updated information about CBAM is as follows:

Climate change is a global problem that needs global solutions. As the EU raises its own climate ambition and many non-EU countries adopt less strict climate policies, there is a risk of so-called "carbon leakage". Carbon leakage occurs when EU-based companies move carbon-intensive production abroad to countries with less stringent climate policies than the EU, or when EU products are replaced by more carbon-intensive imports.

The EU's Border Carbon Adjustment Mechanism (CBAM) is our landmark instrument to put a fair price on carbon emitted during the production of carbon-intensive goods entering the EU and to incentivize cleaner industrial production in non-EU countries. The gradual introduction of CBAM is in line with the phasing out of the allocation of free allowances under the EU Emissions Trading System (ETS) to support the decarbonization of EU industry.

By verifying that a price is paid for the embedded carbon emissions produced in the production of certain goods imported into the EU, CBAM will ensure that the import carbon price is equivalent to the domestic production carbon price and that the EU's climate targets are not undermined. CBAM is designed to be compatible with World Trade Organization (WTO) rules.

CBAM regulation,

It officially entered into force the day after its publication in the Official Journal of the EU on May 16, 2023. CBAM itself will enter into force in a transitional phase on October 1, 2023, with the first reporting period for importers ending on January 31, 2024.

The reporting obligations and information required from EU importers of CBAM goods, as well as the provisional methodology for calculating the embedded emissions released during the production process of CBAM goods, are further specified in an Implementing Regulation adopted by the Commission on 17 August 2023.

You can access the full document containing up-to-date information on CBAM (Carbon Border Adjustment Mechanism), the EU Factsheet and CBAM Key Q&A's documents by clicking on the links.