EU: Implementing rules for transitional phase of carbon border adjustment mechanism adopted
Rules governing implementation of carbon border adjustment mechanism during its transitional phase, adopted
Implementing rules for transitional phase of carbon border adjustment mechanism adopted
The European Commission (EC) today adopted the rules governing the implementation of the carbon border adjustment mechanism (CBAM) during its transitional phase, which starts on 1 October 2023 and runs until the end of 2025.
As noted in an EC release, the implementing regulation details the transitional reporting obligations for EU importers of CBAM goods, as well as the transitional methodology for calculating embedded emissions released during the production process of CBAM goods.
In the CBAM's transitional phase, traders will only have to report on the emissions embedded in their imports subject to the mechanism without paying any financial adjustment. This will give adequate time for businesses to prepare in a predictable manner, while also allowing for the definitive methodology to be fine-tuned by 2026.
To help both importers and third country producers, the EC today also published guidance for EU importers and non-EU installations on the practical implementation of the new rules. Dedicated information technology tools to help importers perform and report these calculations also are currently being developed, as well as training materials, webinars, and tutorials to support businesses when the transitional mechanism begins.
While importers will be asked to collect fourth quarter data as of 1 October 2023, their first report will only have to be submitted by 31 January 2024.
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