The CBAM compliance enters a new phase

The Carbon Border Adjustment Mechanism (CBAM), established with the EU Regulation No. 2023/956 of 10 May 2023, is an environment protection policy aimed to put a price on the emissions generated in the production of specific goods imported into the EU. Currently in its transitional period, 1 October 2023 – 31 December 2025, the definitive regime will start from 2026.

At the moment the CBAM applies to cement, iron and steel, aluminium, fertilisers, electricity and hydrogen: when importing from non-EU countries, importers have to report related emissions, considering both the direct emissions from manufacturing, and the indirect emissions from the generation of used electricity.

On last 1 January 2025, the CBAM-related compliance entered a new phase, with the official launch of the CBAM Registry’s new section allowing suppliers outside the EU to share goods’ emissions data with the EU importers.

After the full implementation, importers will need to purchase CBAM certificates corresponding to the emissions of imported goods, with deductions allowed for costs incurred in the country of origin. A system of penalties for non-compliance is already in place.

The CBAM will surely impact on companies that import from non-EU countries such as China, thus making it essential to have up-to-date information to proceed with the related compliance activities.