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If you need assistance, please contact us at one of the following contacts:
- e-mail on ekotox(at)ekotox.eu
- +421 2 45943712
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What is CBAM?
The Carbon Border Adjustment Mechanism (CBAM) is a policy tool developed by the European Union aimed at preventing carbon leakage and ensuring that the price of carbon emissions is consistent, regardless of where goods are produced. CBAM imposes a carbon price on imports of certain goods from outside the EU, aligning them with the EU’s carbon pricing rules.
- Preventing Carbon Leakage: Ensuring that production does not shift to countries with less stringent climate policies.
- Equalizing Carbon Costs: Making sure that imported goods face the same carbon costs as goods produced within the EU.
- Encouraging Global Climate Action: Incentivizing other countries to implement carbon pricing measures.
How Does CBAM Work?
Scope: Initially, CBAM will cover sectors with high carbon emissions that are at significant risk of carbon leakage, such as cement, iron and steel, aluminum, fertilizers, and electricity.
Implementation Phases:
- 2023-2025: Transitional period where importers will need to report emissions embedded in their goods without paying a financial adjustment.
- From 2026 Onwards: Full implementation where importers must purchase CBAM certificates corresponding to the carbon price that would have been paid if the goods had been produced under the EU’s carbon pricing rules.
Calculation of Emissions: Importers must calculate the greenhouse gas emissions embedded in their imported goods and purchase CBAM certificates accordingly.
Adjustment for Carbon Pricing in Exporting Countries: If the exporting country has carbon pricing, the cost will be adjusted to avoid double charging.
CBAM reports quarterly
| Quarter | Submission due by | Modification possible until |
| 2023: October – December | 2024: 31/01/ | 2024: 31/07/ |
| 2024: January – March | 2024: 30/04/ | 2024: 31/07/ |
| 2024: April – June | 2024: 31/07/ | 2024: 30/08/ |
| 2024: July – September | 2024: 31/10/ | 2024: 30/11/ |
| 2024: October – December | 2025: 31/01/ | 2025: 28/02/ |
| 2025: January – March | 2025: 30/04/ | 2025: 31/05/ |
| 2025: April – June | 2025: 31/07/ | 2025: 31/08/ |
| 2025: July – September | 2025: 31/10/ | 2025: 30/11/ |
| 2025: October – December | 2026: 31/01/ | 2026: 28/02/ |
Advantages of CBAM:
Legal background and who is responsible
In May 2023, the European Union Decree (2023/959 of the European Parliament and Council: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32023R0956) included rules and measures to offset the carbon intensity of imported goods.
The aim of the measure is to offset the competitive advantage of products produced in a cheaper but more environmentally polluting way in EU countries and to reduce emissions.
Companies (mainly producers and traders of energy, fertilizer and chemicals, players in the automotive and machinery industry, as well as traders of iron, steel and aluminum raw materials) who import products belonging to the CBAM are subject to a reporting obligation, and later also a payment obligation.
Data submission obligation: tasks
- Create an EU login account, which can be created by anyone as a natural person
- Registration with the appropriate National Climate Protection Authority
Having an EU account ID, you must initiate temporary registration with the National Climate Protection Authority
- After successful registration, you will be able to enter the CBAM interface managed by the EU, where you can make the specific quarterly report.
Conclusion
CBAM represents a significant step in the EU’s climate strategy, aiming to reduce carbon emissions globally by ensuring that imported goods meet the same environmental standards as those produced within the EU. By addressing carbon leakage and promoting fair competition, CBAM seeks to drive global climate action and support the EU’s ambitious climate goals.
We will help you with CBAM!
Our experts provide comprehensive support and consultation on the Carbon Border Adjustment Mechanism (CBAM). We will clarify all aspects of the new regulation, assist in preparing the necessary documents, and ensure your business complies with the new requirements. Contact us to confidently adapt to changes and minimize risks!
