New Measures to Reduce Carbon Emissions on Imports
A new Carbon Border Adjustment Mechanism (CBAM) has been adopted for imports of products manufactured in carbon-intensive industries.
CBAM will initially apply to imports of the following goods: cement, iron and steel, aluminium, fertilisers, electricity, as well as products based on these raw materials. A detailed list of controlled goods can be found in Annex I and Annex II of Regulation (EU) 2023/956 of the European Parliament and of the Council.
The mechanism is planned to start with a transitional period from October 2023 to December 2025. During the transitional period, importers will be required to report the embedded emissions in the goods listed above. This information must be provided to importers by their suppliers outside the EU. If information on the embedded carbon emissions for a specific product is unavailable, importers will be allowed to use predefined values provided by the competent authorities in the Member State of import.
CBAM will become fully operational and begin having a financial impact from 1 January 2026. In addition to declaring embedded carbon emissions, importers will have to start purchasing carbon certificates corresponding to the carbon emissions that a local producer would incur if the goods were manufactured in the EU.
During the transitional period, all traders will be able to import carbon-intensive goods, with the only obligation at import being to declare the embedded carbon emissions.
After 1 January 2026, the above-mentioned goods may only be imported by persons with the status of “authorised CBAM declarant”. From 31 December 2024, importers will be able to apply for authorised declarant status. Persons without authorised operator status will not be able to import the goods in their own name and may need to use an indirect customs representative that is an authorised operator.
Useful resources
Information on the European Commission website
If you need additional information or professional advice, you can rely on Unimasters for consultation on customs matters related to your business.
Our customs specialists are available at:
E: customs@unimasters.com | T: 0800 800 00 (toll-free)