Price adjustment based on CO2 emissions for goods from outside the EU
27.06.2023
News
Imported goods from outside the EU will fall under new European regulations starting from 1 October 2023: the Carbon Border Adjustment Mechanism (CBAM). From that date importers will need to report on these goods, and from 1 January 2026, there will be a registration and payment obligation.
CBAM is a price adjustment applied to imports into the EU for designated goods based on their CO2 emissions in the production process outside the EU. In Annex I of Regulation (EU) 2023/956, you can find the list of goods covered by CBAM (CBAM goods). You can access this list by searching 'CBAM' on eur-lex.europa.eu/homepage.
The price adjustment is made through mandatory payments in the form of certificate purchases. In addition, CBAM requires importers of CBAM goods to register and report on the CO2 emissions associated with the production of those goods.
Why CBAM?
CBAM is a European regulation and part of the 'Fit for 55' package. The goal of this package is to reduce greenhouse gas emissions by at least 55% by 2030. Currently, the EU operates a system where producers within the EU have to purchase emission allowances for the CO2 emissions of their products (EU Emissions Trading System, EU ETS). The price adjustment of CBAM ensures that these producers no longer face a competitive disadvantage when importing from third countries with lower climate standards.
What changes from 1 October 2023?
From 1 October 2023, you will be required to report to the European Commission on the amount of CO2 emitted during the production of CBAM goods outside the EU on a quarterly basis. This report must be submitted no later than one month after the end of each quarter. Article 35 of the regulation specifies what information you must include in the report. The Commission will provide clarity on the reporting procedure at a later date, which will be made available on douane.nl/customs.
Read more about CBAM on this page Carbon Border Adjustment Mechanism (CBAM).
