EU CUSTOMS: CBAM implementation pushed back to October 2023
The implementation of the Carbon Border Adjustment Mechanism’s first phase has been delayed until October 2023
The European Commission has stated that the delay of the Carbon Border Adjustment Mechanism’s (CBAM) transition period from January to October 2023 will allow both EU and non-EU businesses a “careful, predictable and proportionate” transition to the new carbon import tax.
The new agreement, between the European Parliament and Council on the Carbon Border Adjustment Mechanism, will work alongside a revision of the Emissions Trading System (ETS) in order to support and promote the decarbonisation of imports into the European Union.
The first phase of the transition will incorporate the reporting of direct greenhouse gas emissions for specified goods importers, as listed in our Intro to CBAM, with no financial payments or adjustments necessary during this phase.
Following the initial transition period, it is expected that indirect emissions will be included in the scope in addition to the necessity for certificates relating to the import goods. The certificates, which will correspond with the quantity of imported goods, will come at a price calculated and adjusted weekly by the EU ETS and will be measured in €/tonne of CO2 emitted.
Before the definitive system is put in place, a review of the transitional period will take place alongside a review of the product scope to ensure that the system is feasible to each sector it is being implemented across.
For more information see our Intro to Carbon Border Adjustment Mechanism or speak to a customs expert by completing the form below