The EU’s Carbon Border Adjustment Mechanism (CBAM) has introduced regulations that require specific goods imported into the EU to incur comparable carbon costs as if they were produced within the region. This measure seeks to create a level playing field and address carbon leakage, discouraging businesses from moving production to countries with lower carbon pricing.

To prepare importers and supply chains for CBAM, a transitional reporting phase has been in place since October 1, 2023, which will extend until the end of 2025. During this period, importers of covered goods, such as cement and aluminum, must submit quarterly reports via the CBAM transitional registry. These reports include details on the volume of imported goods, total embedded emissions, and the carbon price in the country of origin. Importers initially had the flexibility to use various methods to calculate emissions. However, from January 1, 2025, only calculation-based or measurement-based methodologies outlined in the CBAM Implementing Regulation will be accepted, with strict limits on estimates for certain goods.

Starting January 1, 2026, the full CBAM regime will require importers to buy CBAM certificates based on the carbon content of imported goods and surrender these annually. This ensures that importers account for the embedded carbon emissions reported from the previous year. Additionally, by December 31, 2024, importers must apply for “authorized CBAM declarant” status to be eligible to import CBAM-covered goods from 2026 onward. This status and the CBAM registry will assist customs and competent authorities in monitoring compliance, with provisions for non-EU suppliers to register their carbon data within the CBAM framework.

Navigating the complex and evolving requirements of CBAM compliance can be challenging. CBAM Reports specializes in helping businesses understand and implement the reporting standards under the CBAM, from emission calculations to registry submissions. With our expertise, we ensure seamless compliance, minimize the risk of non-compliance, and allow companies to focus on their core operations. Reach out to CBAM Reports today to stay compliant and avoid disruptions in your EU import processes.

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