Carbon Border Adjustment Mechanism (CBAM)
Learn about the system that the EU uses to import goods from outside the EU, which sets a fair price for the carbon emitted during production and promotes cleaner energy. As well as the mechanism to be carried out at the border due to the risk of leakage of this carbon.
Key elements
Regarding the reporting requirements and methodology, some flexibility is provided for in the values used to calculate emissions embodied in imports during the transitional phase.
During the first year of application, companies will be able to choose between three notification methods:
- full notification according to the new methodology (EU ## method );
- notification based on equivalent national systems of third countries;
- notification based on reference values.
From January 1, 2025, only the EU method will be accepted.
The Commission is also developing specific IT tools to help importers make and report these calculations, as well as training material and tutorials to support businesses when the transitional mechanism begins, from 1 October 2023.
Before the entry into force of the final system on January 1, 2026, a review of the operation of CBAM will be carried out during its transitional phase . At the same time, the scope of the products will be reviewed to assess the feasibility of including other goods produced in sectors covered by the ETS in the scope of the CBAM mechanism. The report will include a timeline for its inclusion by 2030.