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 implemented at the border due to the risk of leakage of this carbon.
Key elements
Regarding reporting requirements and methodology, some flexibility is provided for in respect of the values used to calculate the 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;
- reference value based notification.
From January 1, 2025, only the EU method will be accepted.
The Commission is also developing specific IT tools to help importers perform and report these calculations, as well as training materials and tutorials to support businesses when the transitional mechanism starts, as of 1 October 2023.
Prior to the entry into force of the final system on 1 January 2026, a review of the operation of the CBAM will be carried out during its transitional phase. At the same time, the scope of products will be reviewed to assess the feasibility of including other goods produced in sectors covered by the ETS within the scope of the CBAM mechanism. The report will include a timeline for inclusion by 2030.