EU CBAM – update (EU)

The EU CBAM is a proposed tax on imports to the EU zone, to be applied to products traded in the industry sectors covered by the EU ETS. Information is here.

The EU CBAM will not start before June 2023 or later.

Any carbon price paid in the country of origin of a good will be recognised and there will be an opportunity for third countries to put in place an agreement with the EU which could cover, but would not be limited to, how their carbon price would be recognised under the EU CBAM.

The EU will turn to the details of this third country carbon price agreement process once the Regulation is finalised and the transitional period started.

The reporting of embedded emissions will follow a simple methodology and, under the Commission’s proposal, will not require verification in the transitional period.

Re Art. 9 of the proposed regulation, the EU intends to find avenues to facilitate compliance with the CBAM.

[the UK is a third country, but is developing its own UK CBAM]