Deadline ahead for first CBAM reporting

New regulations governing the importation of carbon-intensive goods  

Increased global endeavors to combat climate change have prompted the implementation of the Carbon Border Adjustment Mechanism (CBAM) within the European Union. This mechanism aims to ensure equitable competition between European and non-European entities by establishing parity in carbon emission pricing. As the imminent deadline for the initial CBAM reporting period draws near, it is imperative for importers to ascertain whether their imported goods fall under or will be subject to CBAM regulations. Require guidance on this matter? Crowe Peak’s experts are ready to help. Contact us directly. 

Significance of CBAM 

CBAM is crafted to uphold equitable competition between European companies and those beyond the EU. This is paramount as numerous European enterprises contend with stringent CO2 emission regulations and/or obligatory CO2 emission payments. Consequently, CBAM seeks to deter European entities from relocating production to nations with laxer CO2 regulations. Initially, CBAM will target imports of particular goods and chosen precursors known for their carbon intensity and susceptibility to carbon leakage: cement, iron and steel, aluminum, fertilizers, electricity, and hydrogen. 

Transition period for CBAM and reporting obligations 

On October 1, 2023, CBAM commenced its transitional phase, lasting until 2026. By 2026, the mechanism will be fully operational, necessitating affected companies to procure certificates for imported goods falling in scope of CBAM. Throughout the transitional phase, importers of goods subject to the new regulations will only need to report quarterly on the GHG emissions encompassed in their imports (both direct and indirect emissions) and are exempt from the requirement to procure and surrender certificates. The initial CBAM reporting deadline for importers under the transitional regime was January 31, 2024. However, due to technical issues CBAM importers are eligible to request an extension from February 1, 2024, granting them an additional 30 days to submit their CBAM report. 

Received a letter from Dutch Customs concerning CBAM? 

As the deadline for the initial reporting period approaches, importers should verify whether the goods and materials they import meet the criteria for CBAM classification. Does your company need help determining its CBAM eligibility? Are you interested in discussing CBAM reporting procedures? Do you suspect that your company may need to submit a report in the upcoming quarter? Or are you seeking information on importers’ CBAM obligations starting in 2026? Reach out to our team of CBAM specialists today.