The Carbon Border Adjustment Mechanism, CBAM, came into force on October 1, 2023 in its transitional phase. Importers will be asked to collect data for the fourth quarter of 2023, with the first report due by the end of January 2024.
The CBAM will initially apply to imports of certain selected goods whose production is carbon-intensive and take the most significant risk of carbon leakage: cement, iron and steel, aluminum, fertilizers, electricity and hydrogen.
After the transition phase, the permanent system will come into force on January 1, 2026 and importers will have to declare each year the quantity of goods imported into the EU from the previous year and their incorporated GHGs. They will then deliver the corresponding number of CBAM certificates.
