CBAM: phases of implementation of the carbon border adjustment mechanism
An in-depth analysis on the subject of CBAM in anticipation of the deadline for the submission of the first report on January 31 during the transitional period (1 October 2023 to 31 December 2025). Based on Article 9, par. 2, of the Implementing Regulation, the CBAM report which has already been submitted may still be corrected until two months after the end of the reporting quarter, when more accurate data on embedded emissions becomes available to the importer after the reporting deadline.
An analysis for the online newspaper Giuffrè Quotidianopiù.
With Regulation (EU) 2023/956, the so-called "Carbon Border Adjustment Mechanism" (CBAM) has been introduced. This mechanism is an essential tool of the European Green Deal aimed at reducing greenhouse gas emissions by at least 55% by 2030.
The CBAM - Carbon Border Adjustment Mechanism (Carbon Adjustment Mechanism at the borders)
The CBAM, introduced with EU Regulation 956/2023, is an environmental levy (applied on a transitional basis from October 1, 2023, to December 31, 2025). It will impact, starting from its definitive entry into force on January 1, 2026, certain listed goods whose production is of “high carbon intensity”, such as cement, cast iron, iron, steel, aluminum, hydrogen, electricity, fertilizers, subject to release into free circulation in the EU customs territory.
The CBAM regulation aims to address the issue of greenhouse gas emissions embedded in non-EU goods subject to importation (listed in its Annex I), taxing those produced based on production standards less stringent than those of the EU. This is to prevent the risk of carbon emissions relocation abroad by EU industries, thereby reducing global emissions and supporting the goals of the 2015 Paris Agreement. The regulation also encourages emission reduction by non-EU operators.
The regulation applies to goods listed in the aforementioned Annex I, originating from a third country. This includes the products processed from such goods …….
