In the end of October, the European Commission put forward two draft regulations essential for implementing the EU's Carbon Border Adjustment Mechanism (CBAM). These include guidelines for applying to become an Authorized CBAM Declarant and the establishment of the CBAM Registry. The draft on Authorized CBAM Declarants outlines the procedures for authorization and maintenance, which will take effect from December 24, 2024, allowing sufficient time for the development of the CBAM Registry's IT system by January 2026. Businesses can submit their feedback on these drafts through the EU’s "Have Your Say" portal until November 27 and 28, respectively.

The draft regulations specify that applications for Declarant status must be submitted electronically to the competent authority in the applicant's home Member State, with a 120-day review process including consultation by relevant EU bodies. The evaluation process will consider several criteria, such as the applicant's financial stability, compliance history, and the existence of adequate operational capacity. Guarantees may be required for applicants with less than two financial years at the time of application, ensuring coverage of their CBAM certificate obligations. Compliance monitoring is ongoing, and authorizations can be reassessed or revoked if criteria are not met.

Additionally, the draft regulation on the CBAM Registry details its role as a central hub for CBAM compliance. It will link with various EU systems, safeguarding confidential data and granting access to authorized Declarants and relevant authorities. The registry will facilitate the management and reporting of CBAM obligations, integrating with existing customs and tariff databases to streamline compliance activities.

For businesses navigating CBAM requirements, CBAM Reports offers tailored services to simplify compliance processes. Contact us and we will help streamline operations and maintain adherence to EU regulations.

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