What is CBAM?
The EU’s Carbon Border Adjustment Mechanism (CBAM) is the tool to put a price on the carbon emitted during the production of carbon intensive goods that are entering the EU. The CBAM will help reduce the risk of carbon leakage while encouraging producers in non-EU countries to green their production processes and countries to introduce carbon pricing measures.
When is it?
The transitional period applies as of 1 October 2023. During the transitional period importers are required to report on a quarterly basis the embedded emissions in goods imported during the previous quarter of the calendar year, setting out direct and indirect emissions as well as any carbon price effectively paid abroad. The first quarterly CBAM report is due by 31st January 2024.
What do I need to do?
During the transitional period declarants are asked to submit CBAM reports containing the following:
- Total quantity of goods imported during the preceding quarter.
- Total embedded direct emissions (and total indirect embedded emissions for goods other than electricity)
- The carbon price due in the country of origin for the embedded emissions
Where should the CBAM reports be submitted?
The CBAM Transitional Registry has been developed to help importers submit their CBAM reports. It will provide:
- A single platform to collect information & create synergies;
- A tool to perform CBAM-related tasks;
- A secured platform to ensure confidentiality of information.
For more information about CBAM and the Transitional Registry please visit European Union CBAM Webpage
A user manual is available for CBAM Reporting Declarants is available at the EC site as well here.